Goro is bucking the trend today and is getting ready to breakout of a bullish falling wedge. The neckline held support yesterday which is what we like to see. I would like to see a nice pick up in volume when GORO breaks the top red rail of the bullish falling wedge. These stronger stocks will lead the rest higher when the time is right.

The XAU is showing our uptrend channel is still intact and there is a strong possibility that we are forming a triangle consolidation pattern. We have 3 confirmed reversal points so far in the development of this triangle with the 4th and most important reversal point just about finished. You can see where the top blue rail of the triangle and the bottom black rail of the uptrend rail intersect at 192. I would view this triangle as a halfway pattern to the upside. The blue arrows is how I would measure the price objective. We may have another day or two to complete the red triangle and start the next leg up. Remember consolidation patterns are a fight between the bulls and the bears until one side wins out. The odds favor an upside breakout as the XAU has been in an uptrend since the first of the year. I know it doesn’t seem like it but that’s what has been happening. Two steps forward and one step back.