This pattern seems to appear over and over again on hourly/minutes timeframes when Gold is in a short-term downtrend. The last two weeks captured here is just another example. Will the history repeat itself in the next 24-36 hours taking Gold down to the $1,300-ish area?
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Now it appears that the falling flag (green lines) is in fact in play. Let's see what happens next...
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Pretty much right after my original post Gold changed its mind and started printing a steep falling flag on hourly (bold blue borders (B B B) on the chart below). There is also a larger scale falling flag (wedge?) developing since Sep 22 (bordered by the thin red lines).
The fact that both flags are falling, combined with the apparent divergences on hourly for the three indicators on the chart (all originating from approximately the same point in time since early last week), gives hope that the bottom could be near (and soon).
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Below is not Gold but, obviously, very related. Third time is a charm?
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Again Gold related.
Are we on the way to close the gap? ...(and then some more)
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Further update to the potential pattern in JNUG:
However, I have to acknowledge that the idea is not quite mine. My thanks goes to SalN here for spotting the set up today:
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Wouldn't it be ironical...
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Another potential rising flag on hourly?
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daytraderjames
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Thorough analysis. Turns out to be straight on point. At which level do you expect reversal?
VirtualFax
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To be perfectly honest with you, I'm still trying to digest what happened in the last hour. It was both expected and not. Expected since I have been waiting for Gold to land at the bottom of the consolidation flag (bold red lines on the chart below). But I didn't expect it to happen as soon as today. To try to answer your question, I'm in the process of figuring which of the two bold lines below $1,300 could likely become a reversal. Another alternative is the 200 MA (black).
In the meanwhile I'd suggest reading Alex's recent blog here:
He's very good and is always able to put things in prospective.
ice_bird001
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Thanks for the chart and the link.
VirtualFax
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My pleasure. Hope it'll help you to make a few bucks. However, regardless what I or others say, take a note of it but never trade someone else's plan.
ALWAYS HAVE YOUR PLAN BASED ON YOUR OWN ANALYSIS.
ice_bird001
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Thanks sir! You analysis of UOIL last week already helped me make a few bucks. :)
pmcllc
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hopefully it will bottom for good next year around 1000s...
VirtualFax
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I think bottoming around $1,000 next year is a little too extreme of an expectation. At the same time, you never know...
VirtualFax
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Pretty much right after my original post Gold changed its mind and started printing a steep falling flag on hourly (bold blue borders (B B B) on the chart below). There is also a larger scale falling flag (wedge?) developing since Sep 22 (bordered by the thin red lines).
The fact that both flags are falling, combined with the apparent divergences for the three indicators on the chart (all originating from the same point in time since early last week), gives hope that the bottom could be near (and soon).
NihalCassim
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You are good man. Been following you. Very objective and thorough.
VirtualFax
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Appreciate kind words. Thank you.
Though keep in mind I'm wrong more often than I'm right : )