A couple weeks ago I had a thought that the 3 year or so consolidation we have been in is a bigger diamond pattern. It was sparked by Fully mentioning that for 3 years or so the price of Gold has averaged around 1200. No net change to speak of, of great note. Now something in a bear market should be trending down, and we did get that low. But we have been sideways for a long long time.

 

http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=5&mn=0&dy=0&id=p74698773769&listNum=1&a=516206533

 

This is a chart I have done up, but I have ignored the recent high and the October 2014 low. For the simple reason that depending how you draw the trendlines price didnt actually meet it. So i’m looking for some sort of reverse symmetry on this side of the pattern and the Apex is closing in…tick tock.

 

I think we have had some sort of symmetry and we may be heading lower from here. Albeit for a short period of time.

 

What I have also been thinking about is Plungers 3 stages of a Bear market analysis. How he mentioned that price consolidated into a diamond at the end of what we thought was the end of phase II. Maybe we could still be in it and the phase III capitulation is to come later this year? Just a thought. Gulp.

 

Added: The pattern may not work it is just a thought. We could actually break out here like Graddhy is calling for and Norvast seems to suggest the IMC has not topped just yet and we should still move higher. In contrast to Rambus and Plungers view and others that the dollar has bottomed and started a new cycle up in the ongoing Bull market.