Was just having an interesting conversation with a friend earlier today, and this is dedicated to those interested, as he is, in gold. The Monthly Gold GC1! Chart analysis shows a couple of patterns...
Firstly, it is obvious that Gold does a hard rally, dip dive and then higher high type of pattern over the years, spanning larger and larger magnitudes. Each (almost parabolic) strong rally is followed by a 60ish percent dip, only to recover over time for higher highs.
Secondly, noted a bowl pattern in recent years after the 2011 high. This is highly suspect to be a Cup and Handle pattern, with the handle part due to retrace about 60ish percent from the current record highs.
Taken together, confluence of both patterns, corroborated with fundamental factors, puts Gold ready for a higher high, but likely after a retracement to about 1485-1550 levels.
IF gold pushed higher, then retracement levels may only reach 1600 at the lowest...
So plan and be prepared. Have a set of rules. Stick to it, else review objectively to adjust where necessary.
Firstly, it is obvious that Gold does a hard rally, dip dive and then higher high type of pattern over the years, spanning larger and larger magnitudes. Each (almost parabolic) strong rally is followed by a 60ish percent dip, only to recover over time for higher highs.
Secondly, noted a bowl pattern in recent years after the 2011 high. This is highly suspect to be a Cup and Handle pattern, with the handle part due to retrace about 60ish percent from the current record highs.
Taken together, confluence of both patterns, corroborated with fundamental factors, puts Gold ready for a higher high, but likely after a retracement to about 1485-1550 levels.
IF gold pushed higher, then retracement levels may only reach 1600 at the lowest...
So plan and be prepared. Have a set of rules. Stick to it, else review objectively to adjust where necessary.
