"Giant Pennant" sounds funny, but that is exactly what Gold finds itself in. A giant contracting pennant pattern.
The nice thing about these patterns is which ever way they conclude they move to approximately the length of
the widest range of the pattern. The bad thing about these patterns is that no one can really know how they will
conclude. The ending is often marked by many fake outs, leading both buyers and sellers to mistake which way
the pattern will conclude. If the markets can stay strong and oil continue its push to 93, then we can reason
1. there will be highly likely a bearish fake out dipping below the bottom of the pennant bottom.
2. We can estimate the price target at around 2110.
3. IF on the other hand the market remain weak this will likely do the opposite and fake out the bulls and conclude
down to a target of 1541.
We only need patience and let this play out and with more certainty we can profit from what wil likely be a very
strong move in either direction
The nice thing about these patterns is which ever way they conclude they move to approximately the length of
the widest range of the pattern. The bad thing about these patterns is that no one can really know how they will
conclude. The ending is often marked by many fake outs, leading both buyers and sellers to mistake which way
the pattern will conclude. If the markets can stay strong and oil continue its push to 93, then we can reason
1. there will be highly likely a bearish fake out dipping below the bottom of the pennant bottom.
2. We can estimate the price target at around 2110.
3. IF on the other hand the market remain weak this will likely do the opposite and fake out the bulls and conclude
down to a target of 1541.
We only need patience and let this play out and with more certainty we can profit from what wil likely be a very
strong move in either direction