No, this is not a bullish chart at present. In fact, it suggests lower prices although a bounce at any time shouldn't be ruled out. Eventually, it appears that the gap near the 130 area may fill. Could prices go even lower? Sure, they can always go lower. After all, this is the gold sector we're talking about. How low…you're guess is as good as ours.
At present, we're not convinced that the island bottom will fill its gap. But, it could.
Here's what we're watching for:
The present decline from mid-April is likely an ABC down. It's interesting that a 1:1 ABC down projects exactly 130.87, right into the gap. The next week or two should provide fireworks for all!
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