This is based on the long-term trend starting 1 year ago (exactly May 2019). I want your opinion on this very interesting pattern I found.
As you see and probably most are well aware of, Gold has been trading within a Triangle since early April on the 1D chart, with the MACD close to forming a Bullish Cross.
The very same Triangle has been formed twice after the last two tests on the 1 year trend-line (excluding of course the break-out on March 13th which was fueled by the COVID sell-off on the stock markets). What followed after the Triangle broke upwards was a +7% bullish extension. In total the whole move from the last Higher Low of the Triangles was +10%.
The MACD cross on the Triangles' breakouts was identical. Does this mean Gold is about to make a +7% jump? Now this is a long term projection and many parameters have effect on such estimations. I am not trying to inject euphoria on Gold buyers or scare sellers, I prefer trading smaller time-frames. Just pointing out a technical occurrence.
I am very curious what you think about that chart. Feel free to share your work and let me know in the comments section!
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Please don't forget we are facing another market crash. From yesterday markets are dropping very sharply giving a warning for another market sell off. If this is the case then we will have gold around $1600.
GoldBasis
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@hesamqaydi I think this will only be the case if stocks are dropping below March levels.