Well, gold has been establishing a support level for nearly three months now - starting with the most recent low on May 16 [when LBMA PM Fix was $1,548.50]
As the chart shows: that price was almost identical to the low of December 29, 2011: close enough, by my reckoning, to at least warrant a shout of "double bottom" ...
* Investopedia explains 'Double Bottom'
The double bottom looks like the letter "W". The twice
touched low is considered a support level.
Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and volume on the ensuing advance should increase.
Wednesday August 8, 2012 by