We've had the initial Cup & Handle Pattern & subsequent breakout - exactly to the theory.
Now we've just seen an A,B,C retrace (W2) which was halted at the Cup & Handle breakout line for a fleeting Gap Fill.
This was also the 50% retrace level of the (W1) Impulse.
Should push on now (W3) with a target of $1.41
This is a much longer term, Weekly Candles, Chart on Gold to supplement my other short-term posts on the price action.
We can see that Gold is firmly in the long term uptrend channel and actually currently below the mid-line of that channel so, not 'over-bought' as far as I am concerned.
There is a clear long term 'Cup & Handle' pattern which gives a circa $2,600...
In this chart, I am zooming in for closer look at the chart over the last 26 months.
Jan 2021 was the peak of the first Major Wave 1 which ran from 2.5p to £1.825 & which consisted of a clear 1,2,3,4,5 pattern.
From Jan 2021 the Corrective Major Wave 2 then took hold and saw the price fall from £1.82 all the way back down to 62p on 13th October 2022 in a typical...
Updating my earlier TA on the Gold chart.
Following the Inverse Head & Shoulders set up, we now have an upside breakout from a Rising Wedge, arguably now a High & Tight Flag.
The $1,980 price target still stands.
We've seen a 1,2,3,4,5 step advance (Wave I) and then an a,b,c counter trend decline (Wave II).
Wave III now looks to be underway and has a target of circa 100p, based on EW theory and the metrics of Waves I & II thus far
This looks like an Inverse Head & Shoulders pattern, reversing the prior downtrend and giving a target price of circa $1,980
Have annotated the main pattern constituents to try and clarify my interpretation
Daily Candles.
LSE:TRT
A clear 1,2,3,4,5 Impulse Wave advance (Wave 1) followed by the Corrective A,B,C Zig-Zag (Wave 2) - Support was finally found at 78.6 retracement level.
Wave 3 now underway with a minimum £2 price target
Have used the Weekly Candles here due to the timeframe involved.
A clear 1,2,3,4,5 Impulse advance (that meets all the EW Rules) for Wave I
Corrective Wave II consists of an a,b,c Zig-Zag decline, that was halted at (4) of the previous wave (also meets all the EW Rules)
Wave III should now develop and, assuming 1.618*Wave I, that gives a target price of circa £3.50
