After the historical decision of the Brits gold printed a terrible rally last week Friday.
I wanted to wait what's happening today on the stocks market and at the precious metals . Gold seems to be holding its gains. It seems to me that we are printing a pennant pattern and as stocks are falling price might break out to the upside.
The target price counted from the pattern is around 1400$.
Tomorrow I'm going to post a daily chart : we need at least one more day to make conclusions on the daily chart.
First of all I'm getting 100% convinced that at 1200$ (30.05.) we printed an Intermediate cycle low and we are in the 1st daily cycle of a new intermediate cycle. So it means there is almost 0 chance that we are going to break below 1200$.
The big question is if we printed a half cycle low (half of a daily cycle) on Brexit night or that was an early DCL .
If it was a HCL we will rally 4-8 days and we will be heading to the DCL : the low could be around 1260-70.
If it was a daily cycle low (DCL) we will rally 20-25 days and then the daily cycle low will be above 1300$.
I noticed in gold these pattern target price prices were working perfectly... So I tend to think that this pennant will work as well. In the HCL case price will run to the green TP area quite fast : in 4-5 days wit hthe falling stock market. In the early DCL case we will have a slower rally in 2-3 weeks.
But I'M quite sure gold is just consolidating right now before the next leg up. And in these moments we are almost tagging the pennant's upper line...
I wanted to wait what's happening today on the stocks market and at the precious metals . Gold seems to be holding its gains. It seems to me that we are printing a pennant pattern and as stocks are falling price might break out to the upside.
The target price counted from the pattern is around 1400$.
Tomorrow I'm going to post a daily chart : we need at least one more day to make conclusions on the daily chart.
First of all I'm getting 100% convinced that at 1200$ (30.05.) we printed an Intermediate cycle low and we are in the 1st daily cycle of a new intermediate cycle. So it means there is almost 0 chance that we are going to break below 1200$.
The big question is if we printed a half cycle low (half of a daily cycle) on Brexit night or that was an early DCL .
If it was a HCL we will rally 4-8 days and we will be heading to the DCL : the low could be around 1260-70.
If it was a daily cycle low (DCL) we will rally 20-25 days and then the daily cycle low will be above 1300$.
I noticed in gold these pattern target price prices were working perfectly... So I tend to think that this pennant will work as well. In the HCL case price will run to the green TP area quite fast : in 4-5 days wit hthe falling stock market. In the early DCL case we will have a slower rally in 2-3 weeks.
But I'M quite sure gold is just consolidating right now before the next leg up. And in these moments we are almost tagging the pennant's upper line...
Comment:
How pattern target prices worked in gold:
Comment:
Almost.
Comment:
The pennant broke down. If it stays there and we break below the 200 MA on the weekly chart we are moving down to the DCL in the following 5-8 days.
That would mean that the pennant is invalid.
That would mean that the pennant is invalid.
Comment:
Weekly chart
Comment:
I'M afraid the pennant is getting invalid.
It depends how the daily close will be. Now it seems that it's a simmetric triangle that broke down.
The target price could be around 1275-80$.
It depends how the daily close will be. Now it seems that it's a simmetric triangle that broke down.
The target price could be around 1275-80$.
Comment:
The pennant broke down, almost tested back. So I make the call for today the pennant pattern is not valid anymore.
Target prices were working nicely in gold so I think we will start to go down to the daily cycle low in the following 4-8 days. It's hard to tell where this DCL could be the target counted from the pattern is around 1270-80.
Target prices were working nicely in gold so I think we will start to go down to the daily cycle low in the following 4-8 days. It's hard to tell where this DCL could be the target counted from the pattern is around 1270-80.
Now I think the only thing because gold is consolidating is the strong dollar.