Loading ...Self-similarity in gold action: now and January 2016? Bullish target at $1360 if $1310 breached.
Self-similarity in gold action between now and January 2016?
No analysis here – just an intuitive observation. I am putting it in here and waiting to see how it turns out.
Of course, what I didn’t mark on this chart above was the major resistance level around $1307-1310. Gold has just topped out at $1306 today as I write (Friday 4th November 2016, 1400 GMT) after reaching around $1308 on Wednesday:
Bigger picture (slightly older chart not including move above $1300). If $1310 is breached, then bullish target might be the top line of the black pitchfork at near $1360. Crucial support is at centre lines of pitchforks coincident at near $1280:
Also from the 24 Jul 2015 ICL very similar…
I just took a look. I didn’t see that one. Even more similar in the sense that there was one really big daily move down during the downleg.
However what I was looking at more was the possibility of the uptrend pulling away in a similar way to January 2016. Tim e will tell and maybe it is just a short term similarity.
I have added the important resistance level at $1307-1310. My pitchfork chart indicates potential $1360 target if gold breaks out above $1310.
Crucial support is at centre lines of pitchforks coincident at near $1280.
Here is what I wrote to Surf City & Plunger yesterday…
“You are correct Rich we are nearing the DCH based on time for a normal trading cycle and we may have already found the top in this cycle.
There are however a couple of instances, namely the 24 Jul 2015 ICL and the 03 Dec 2015 ICL where gold made very little progress out of the ICL for 10-13 calendar days and then went on to make a DCH 10-13 calendar days beyond the normal timing band.
The 07 Oct DCL/ICL (?) has a similar pattern so far…
Using my Fibonacci triangulation technique I can make a case for this DCH to be extended to 15 Nov before falling to a 27 Nov DCL – that would IMO be bullish
I can also make a case for us to roll over here to a DCL or ICL on or around 27 Nov – that would be bearish until that ICL is made.
The jobs report may give us a guide.
My SPX modelling shows that we jump here until Mon then move to a DCL/ICL in stocks post election maybe mid next next week with little or no rebound in stocks until 15 Nov.
That may support the bullish case for gold (and make this a 1/2 cycle correction) but I agree with you Rich it is late in the timing band for a DCH (but it has happened before).”