Loading ...Congestion zone in gold $1220-1260 not a surprise.
For me, gold in in a congestion zone at $1220-1260. As I see it right now, this is not a surprise.
Given this chart, it looks quite easy. There is congestion on a parallel around the median line of the pitchfork that seems to be in play, which is by the way parallel to a huge pitchfork that I have posted earlier that would be bullish, starting in early 2011. Visually, the current flag formation of the past eight weeks can be seen in this context as being up-sloping at around the same rate as the trend of the fork. OK, it is choppy but there are some highs and lows that are on the same parallel:
For me anything over $1240 looks nice enough. Upper line of the fork is at $1405 as of today. That is the potential target then. If it takes a while, the target will be a little higher.
Then look at the bigger picture (blue fork above is changed to orange below and the secular superfork is blue):
Short term more annotations; key levels are probably $1309 and $1430:
Great Perspective Dave !
Fantastic work
Keep us apprised
Great stuff there Dave.
As Fully calls for, keep us updated on these, would be great.
Hi guys, thanks for the positive feedback. I’m not that well at the moment so I have been posting a bit less, since it is a hobby.
I do like Andrews pitchfork studies after watching some videos from Paul Coghlan of Coghlan capital who seems to be an ace on these things. I haven’t really kept up with his work lately though, some of which can easily be accessed on his Twitter feed.
I had been watching this pitchfork for quite some time, in fact, pretty much since the December low, which was kind of anticipatory because it could have gone down further at that point.
Since I posteds thisa gold took a dive to around $1228 on Friday 22 April and bounced to about $1243 momentarily today (Monday 25 April) both well withing the above zone. Anything below about $1210 would not be nice; it would be a breakdown from the parallel support under the choppy channel formation.
Right now, I have been looking at the USDX and its seeming similarity to the gold topping formation in 2011-2013. The USDX has been an awful long time topping and somone posted a chart of the USDX that I actually thought was a gold chart until I clicked on the thumbnail to open it to view it properly.
I am just wondering if the USDX is due for a real dive to 86 soon. Maybe not because I have not looked at any momentum indicators to confirm such a move but there are some parallels with the gold chart before the 2013 point of recognition crash.