Gold Pattern Recognition: New Uptrend Starting

Identifying patterns in gold can be highly evident if one knows where to look. Since gold is primarily driven by a select few (banks mostly), they tend to make their movements within the gold market in a similar fashion, even more so during bull markets.

We can identify 3 movements in the gold price during recent consolidation periods:

1. Price decline from spike high in a 5 peak/point formation
2. Downsloping support in a lower low fashion
3. Finally.. The "Basing" period before resuming the uptrend

This is in conjunction with sentiment in gold being usually bearish or neutral at the very least.

It would appear that the gold price is now in its 3rd basing period right here and now...

Comment:

Phase 3 Basing Action is falling perfectly into place. A run up to $1930 is now sliding back down as anticipated. Gold should base out between $1890-1900 area before resuming the new uptrend. Will be opening up new and significant longs once we hit these target ranges.

Trade active:

$1890 target hit. Putting on 2 lots of XAUUSD here.. Stops in place..

Trade active:

Stop run today but we are still in position with gold bouncing right back up. Gold stocks (GDX) came back from steep loses yesterday which might be a clue that gold will not fall that much further. Stops under the previous swing lows of $1870's still in place..

Trade active:

The basing process continues and as expected, remains choppy and in a slow upslope now. Being patient as this can last another 1-2 weeks but as long as gold holds onto the $1870-1880 region, it continues to build cause to move much higher over the next several months..

Trade closed manually:

Don't like the action in gold at the moment. Reject yet again at just under $1930 is NOT a good sign that gold wants to move higher. Taking small ($15 per contract) profits right here and will standby for better evidence that gold wants to head higher...