Is Gold a Bubble About to Pop? Technical Analysis Says NO

Rather than providing evidence of an expanding bubble, this chart suggests a healthy uptrend that has been repeatedly tested as it drops back to its support levels. Each time those levels held, then gold began another leg up.

No Sign of a “Blow-Off Top” for Gold

The multiple peaks of the near-term topping pattern can be seen as attempts to break above resistance. This testing of resistance and bouncing off support are common characteristics of trending markets.

By contrast, in speculative bubbles, prices rise almost parabolically — the “blow-off top” — and then retreat to pre-bubble levels.

The five-year chart for GLD  doesn’t display any evidence of a speculative blow-off top. Rather, it shows a modest but steady uptrend…

Read more at Daily Finance…

http://www.dailyfinance.com/story/investing-basics/is-gold-a-bubble-about-to-pop-technical-analysis-says-no/19795692/

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