Gold

Following on from yesterdays posts on Gold. The situation that there is a downtrend is apparent to all ( but its duration and strength are yet unknown) and i identified the culprit reaction line that comes from a Schiff (not modified) fork with pivots(listed below) that has without doubt forced price lower.
1. 1st May 08-847.30
2. 16 July 09 -988.28
3. 24 Oct 08-681.26
The resulting reaction line can be see in the 3 smaller screen shots in various time frames. There are several other important RL & ML's both supporting and opposing price.
1. This represents a .382 Fib RT from last July & onwards move up. ( important as no significant RT has taken place yet)
2. Price has already found some support here at these levels around 1325.
3. A failure of this level ( the current fork is easy to drawn and a CL ( approx lies at 1335-1337) failure would indicate further falls).
4. A break below 1324 would then lead to a high probability of one or more tests on 1300.00
5. We have a rounding bottom with a higher low with the right hand 'leg' over the descending reaction line.( plus the 4hr & daily TF bars over the RL)
6. Indicators suggest a oversold market but as we all know indicators can show anything and are just fluff.
The centre line lies also above another descending RL ( not shown here). So to avoid a failure price must have enough energy to get through this line. If price does not break up successfully It looks like a failure situation where we may see price make a series diminishing inverted 'U' cycles before breaking lower- But for the moment i have a long position ( intial stop 2.5$).
Lastly you will see that objects have different positions in different TF's. Also in some lower TF charts you may not see some reaction lines- This is a programing glitch.