Formation breaks to the downside
The wedge in gold has broken to the downside. It's fallen $35 today to as low as $1911.
Since mid-August, the $1900 level has held despite repeated attempts to break it. Even in the flush on August 12, it dipped down below only to storm back above ahead of the close.
The wedge is fairly well-defined now but there are many classic false signals that can come from a break. I would like to see a close below $1900 before throwing in the towel.
