Gold is known to correlate with the 52 months cycle which is prevalent in stocks.
This 52 months cycle completes in March 2020 on time axis for a major change in trend.
Prior to this date, 24th February and 9th March were exact points on the golden ratio curve relative to price at 1689 and 1703 which we saw proved much of a resistance.
Now 2 scenarios are unfolding,
At exactly the completion of the 52 months, price has also completed two major squares from the beginning of the cycle.
From 3rd December 2015 - 9th March 2020 = 1558 days (52 months)
The low on 3rd December 2015 was 1046
1st square high was 1375
1375 - 1046 = 329 units
Next square = 1375 + 329 units = 1704 usd ( the current high)
The 2nd scenario is that price has completed the PHI range 509 units of the larger 822 range at 1556.
The golden ratio of 509 = 312 units
Price has currently advanced half way this golden ratio at 1703 which suggests further advance towards 1869 level.
Please check next posts as we discuss these two major scenario and other mid-term trends to identify which direction to trade in the weeks ahead.
Remember, even though most analysts blame Corona Virus for the recent sharp market swings, it was just a catalyst. Markets across all instruments were topping.
S&P500 at 3397.80
Oil at 70
NASDAQ at 9754.84
AUS200 at 7200.90
DJIA at 29595.75
Gold at 1703
GER30 at 13826.85
These were face values and you can spot the pattern if you observe closely.
This 52 months cycle completes in March 2020 on time axis for a major change in trend.
Prior to this date, 24th February and 9th March were exact points on the golden ratio curve relative to price at 1689 and 1703 which we saw proved much of a resistance.
Now 2 scenarios are unfolding,
At exactly the completion of the 52 months, price has also completed two major squares from the beginning of the cycle.
From 3rd December 2015 - 9th March 2020 = 1558 days (52 months)
The low on 3rd December 2015 was 1046
1st square high was 1375
1375 - 1046 = 329 units
Next square = 1375 + 329 units = 1704 usd ( the current high)
The 2nd scenario is that price has completed the PHI range 509 units of the larger 822 range at 1556.
The golden ratio of 509 = 312 units
Price has currently advanced half way this golden ratio at 1703 which suggests further advance towards 1869 level.
Please check next posts as we discuss these two major scenario and other mid-term trends to identify which direction to trade in the weeks ahead.
Remember, even though most analysts blame Corona Virus for the recent sharp market swings, it was just a catalyst. Markets across all instruments were topping.
S&P500 at 3397.80
Oil at 70
NASDAQ at 9754.84
AUS200 at 7200.90
DJIA at 29595.75
Gold at 1703
GER30 at 13826.85
These were face values and you can spot the pattern if you observe closely.