Gold – The Mother Of All Bullish Pennants ?
It’s worth recalling that whether a pennant/wedge/triangle is likely to be bullish or bearish depends on how you form it in the first place. Do you hit the upper or lower rail first ? Another way of looking at it – is the ‘energy’ being contained, part of an up move, or part of a down move ? Here is a diagram showing you the possible configurations…
Rather than focusing on the last year or two, I decided to ‘zoom out’ a bit and look at the big picture. If this happens to be right (and it may well not), we are looking at a massive pause in a huge bull market move, with enormous potential being contained withing a BULL pennant. This big pennant closes up around the end of January 2018, so we’ll know soon. Here’s the chart…
Interesting. Thanks for pointing this out. By the way, your $CHFUSD posting on 6-5-17 has had a nice BO.