Probably the most concerning chart I’ve had to map. To start with, this is a long, (time) widening, ascending channel , with another ascending channel inside it. It’s got bearish written all over it. As much as I consider ascending channels (bear flags) as bearish patterns, they can also be seen as bullish patterns because the bottom side offers support in a bull run. The widening begs for a Head and shoulders patterns which is a reversal pattern. As you can see, the reversal has taken place, but the target is the bottom side of the ascending channel . So, as someone who is fundamentally bullish on gold , I hope that we do not watch the HNS pattern play out. Because that would put the price on the bottom of a very long bearish pattern , this might consequently result in further loses. I expect that gold continues to go up in value, as it always has. So it’s not crazy to think that it will, it’s just that it’s unsupported by technical analysis .
The good news is the smaller ascending channel has broken and the target has been reached... and then some. So if I was a bullish on gold mid to long term, I might have bought during this first correction. Also, the RSI has hit oversold and there is hidden bullish divergence playing out on the RSI (weak signal). But that small correction has made for a substantial drop on RSI . Which (to me) means that there will be some consolidation at the current price range (probably for a year or two). This will allow for the fundamentals to play out.
Simply put:
If Australia continues to employ a dooch as a Prime Minister
And...
We continue to become a communist country
And...
We continue to be more scared of dying from an invisible fear
And...
we continue to sit on our arses and watch tv instead of creating businesses that protect out economy, spread the wealth and consequently end environmental annihilation
....We likely see the price of Gold bounce to more all time highs.
Personally, I’d rather lose money on Gold then to live in a world as stated above. I just don’t expect anyone to do anything that they have never done.
...Oh Choices.
The good news is the smaller ascending channel has broken and the target has been reached... and then some. So if I was a bullish on gold mid to long term, I might have bought during this first correction. Also, the RSI has hit oversold and there is hidden bullish divergence playing out on the RSI (weak signal). But that small correction has made for a substantial drop on RSI . Which (to me) means that there will be some consolidation at the current price range (probably for a year or two). This will allow for the fundamentals to play out.
Simply put:
If Australia continues to employ a dooch as a Prime Minister
And...
We continue to become a communist country
And...
We continue to be more scared of dying from an invisible fear
And...
we continue to sit on our arses and watch tv instead of creating businesses that protect out economy, spread the wealth and consequently end environmental annihilation
....We likely see the price of Gold bounce to more all time highs.
Personally, I’d rather lose money on Gold then to live in a world as stated above. I just don’t expect anyone to do anything that they have never done.
...Oh Choices.