Last line of defense for gold: falling wedge

We're either at the cusp of the next bull leg or a total break down of gold in the medium term. This week's extreme dollar jawboning has severely ruptured the right shoulder of the inverse H&S reversal I've been anticipating. Despite heavy selling in gold, downward pressure seems to be losing momentum, and the bears could be setting themselves into a trap. My new call is a for a falling wedge reversal, with strong support at the 200-day SMA. I hope to see a break to the upside within the next week...the market needs to wake up and call Bernanke's bluff!

Medium term falling wedge (1 month chart)


Long term falling wedge (8 month chart)