Gold's Attempt to Double Bottom

With the recent market volatility (vix over 20) and selling pressure in the major indices, gold is subject to a decent move to the upside if the SP500 selling pressure persists as a flight to safety asset. A move above the small blue trend line beginning with the August 137.55 high, could be just the catalyst needed to move up and test the dark blue multimonth trend line going back to October 4 of 2012 with a 174.07 high. This trend line is major resistance so expecting a immediate reaction and few day consolidation after its initial test is possible. A move above this major trend line is the 1st confirmation that the dragon reversal bottoming pattern is underway. This will be were the 2nd round of stops will be as this ETF could trade up to the all-important 137.55 high. A close above 137.55 confirms that the double bottom is intact and creates a measured move target up to 160.00. One hurdle in the way to the 160.00 objective will be the 148.27 price which is the double bottom valley low that was confirmed on April 4 of 2013. This level should see a reaction on the initial test because it’s been naked ever since the 2 year double top was confirmed. All in all the flight to safety in this precious metal looks to be underway.