Gold Wedge

Gold may fall to $1450 on wedge and decreasing volume.Gold has been forming a wedge pattern for the past few days and the decreasing volume accompanying it indicates to a classic wedge pattern. Meaning- Gold has a strong chance that it will fall.Now, when will it happen and where to target are questions on which we can only make assumptions. -A rising wedge pattern in a down trend with decreasing volume generally implies that the next move will be downward. Break out to the downside can indicate a good shorting opportunity. -A Possible Trigger: The EU has to devise a strategy by October 23 that will resolve the European debt crisis. A successful plan will result in a global sell-off in gold. -Target: The first target will be around $1450 and the next target will be around the $1300 area. COMEX gold is currently trading at $1689, with $1625 acting as a reasonably good support. However, in the event of a breakout to downside, the support is not expected to hold. (From our research desk-Umesh)