Loading ...Gold Tilting to Bullish
One way I read a chart is to find a center line. In this image you can see that gold is tracing out a modest but distinctive expanding wedge and as price approaches the center line should see a resumption in its bullish outlook. To me this is a good bet for the simplest of reasons. Expanding wedges are reliable as far far as patterns go. They almost always complete before any major directional change takes place. So if gold is going to see a decline it won’t likely happen until after this chart reaches the top of its 5th wave. In other words, if gold can cross above the center line it remains on a buy signal until further notice.
It is nice to see people posting a chart which is becoming scare here or even snobbish to post without.
As you mention … ‘modest but distinctive expanding wedge’ … I would say Modest possible but Distinctive not as both upper and lower lines have just two connection points which is very little. As you like the center line … you should try FORKS.
You are right Nightingale I should get more forks into my charts. I have always been a big fan of your work as you know. Especially the clean crispy charts with minimal linework but clear information that forks offer. For me its simplicity that takes the day. Just one good line is often enough to make a buy/sell decision. There is a lot of complexity to charts of course but winnowing out the salient points for drawing conclusions has been a winning method for me and kept me out of hot water. Gold has popped over my line btw and done so with a nice solid move. The case has been made to keep buying. This last move is the 5th wave up and looks like it will be a solid winner.