WTF Chart of the Day: Why Gold Dropped Back Down?

Told everyone that gold cannot go higher back in end of August until we see a retest of 1320 and below.

Here we are, gold below 1320.

Left side horizontal lines highlight the 1st quarter range in blue and range expansion at 200% in orange and 300% in pink.

Right side horizontal lines highlight the 2013 year range in pale green.

Yellow zone is such a strong resistance on first test, price has to react to it and fall back down to support, first.

Why?

1. 200% 1st quarter expansion level

2. 50% of current year range

3. original down channel bottom going back all the way to year 2012

Why below 1320 as potential support?

1. original spike low back in April

2. 25% mark of year range

3. 200% expansion of the original down channel

Chart reading can be simple if you learn to read it property.

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