We have 3 major trends that will collide next week.
Should get to 1800 next week, then bounce off the primary wave for a healthy correction. But you never know with gold these days. Its quite bullish. If it breaks out of the primary wave, it will go exponential.
Gold's summer season is here and everything looks to be similar to 2011,2016, and 2019. Which means new highs all the way till September.
Miners are already starting to benefit. GDXJ might need to close the month lower, but then its 52 to ???
The Spring season ends within a few weeks. Golden bulls and bears are about to go head to head for season champion.
Bulls will surely win next season, but this season is still close. Bears have a chance for a final round comeback.
Bulls will try to go for the kill this week with a break out of H(1) wedge, while bears try to extend the match to the larger H(4)...
Bulls vs Bears had a showdown reminiscent of old western gunslingers.
It appears the bulls got their shot off first but, sadly missed their target.
Bears will declare victory due to their push in the last hour, but I'm going to call it a stalemate.
Tomorrow is another day and I sense a clear winner will arise...
June 5th and 8th, pointed to by the green arrow, was the largest volume days in history (besides the Covid Crash and the Great Recession Crash days)
Likely due to NFP surprise, market exuberance, and institutions starting the big short.
New wedge has formed which is identical to previous. Gold has too much tailwind to fall too low. So the wedge seems like the best fit.
-copied previous wedge price action to the right (in blue) as a possible path forward
Either the market is massively overvalued, or we have been running 10% inflation every year for 50 years....
Both are dangerous situations.
And we have the highest federal and corporate debt to gdp in history...
Oh and we have a pandemic too...