- Jay
Is the consolidation over ?
After breaking out of its 6 year-long basing pattern, gold went up in almost a straight line. The current consolidation was much needed to cool off the overbought levels in the RSI. Interestingly the price came back to test its first Fibonacci extension level as support. If this area ($1492) can hold, gold should be on its way to the next Fibonacci extension around $1697. "The bigger the base, the higher in space".