Loading ...$GOLD likely breaks one way or the other next week.
A week ago week GOLD broke below the lower rail of the triangle consolidation. It painted the picture of a perfect 5 point reversal.
However, on Tuesday of this past week GOLD popped back inside the consolidation pattern, and is presently knocking on the ceiling.
Technically, the picture is a bull pennant. The false break below the bottom rail and subsequent recovery is bullish.
In any case the breakout needs to happen soon – we are just about out of runway.
Notice that a breakout topside, if it happens, will coincide with a bullish cross of the MACD, and a break of the downtrend line on the RSI.
There have been 7 hits on the bottom rail (count them) It is HOT.
Nice clean chart and analysis. In my weekly chart below I would say it argues for a drop due to the weekly stochastic dropping below 80%. That is not to say that it can’t reverse higher… it can, but odds favor a decline. Also, the gold prices height above the 30 W EMA argues for further cooling off and catching up of the average or put differently shrinking the white space between the two. This is just a review of the probabilities, but anything can happen. Keep in mind that in a bull market surprises occur to the upside.
These factors led me to go to 30% cash. If it breaks higher It will probably do it in typical fashion and not allow one to get in, so I don’t want to give up my position.
https://stockcharts.com/h-sc/ui?s=%24gold&id=p09061825205&listNum=43
If my belief that TLT leads gold is correct then gold is probably heading down.