This Chart Level Could Trip Up Gold’s Rally

Analyst: ‘Trend line should serve as stiff resistance’

by Victor Reklaitis
Market Watch

It’s largely been a fool’s errand to bet against gold this year, but the metal’s detractors could have grounds for fresh hope.

Gold is hitting a tricky spot in its chart linked to its 2011 peak, according to Dana Lyons, a partner at J. Lyons Fund Management.

“The truth, as we see it, is that sometimes prices just run into a technical obstacle on the chart that serves as resistance,” he wrote in a post at See It Market over the weekend.

“In this instance, the obstacle we find is the down trend line … starting at the 2011 highs and connecting the October 2012 highs.”

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