• 20 hours Airlines Could Recover, But Crew Remain Elusive
  • 20 hours Meet The Man Behind The World's Most Exciting Oil Play
  • 2 days Crypto-Mining Immigration Could Be The Start Of A New Trend
  • 4 days Hawkish Fed Sends Gold Prices Crashing
  • 5 days Bezos Is Heading To Space This Sunday
  • 8 days El Salvador’s Surprise Bitcoin Move
  • 11 days Markets Unfazed As Inflation Hits 13-Year High
  • 12 days How the Token Economy is Disrupting Financial Markets
  • 14 days FBI Investigating 100 Types Of Ransomware Attacks
  • 16 days Fed Ends Corporate Credit Emergency Lending Program
  • 18 days AMC Becomes the Latest Winning Meme Stock After GameStop
  • 19 days The Real Reason Your 401k Has Been Lagging
  • 20 days China Lifts Cap On Births, Allows Three Children Per Couple
  • 22 days The Market Is Ripe For Another GameStop Saga
  • 25 days Senate Grills Big Banks Over Pandemic Opportunism
  • 26 days Cannabis Has A Major Cash Problem
  • 27 days Ransomware Netted Criminals $350M In 2020 Alone
  • 28 days Russia Is Taking On Google
  • 29 days Chinese Regulators Deal Another Big Blow To Bitcoin
  • 30 days Ohio Residents Brave Vaccine for Chance To Win $1M
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

TheWaveTrading

TheWaveTrading

TheWaveTrading

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

Contact Author

  1. Home
  2. Markets
  3. Other

Time to Reconsider Gold

Monthly time frame:

  • Gold has been in a bear market since 2011.

  • A potential Ending Diagonal, which is found at the termination point of a large pattern, could establish a major bottom


Larger Image

The Ending Diagonal is a compelling reason to expect at least a large retracement of the decline from the 2011 top

  • Gold is now attempting to breach a trend line resistance from the 2012 lower high
  • A strong end of month could complete a Morning Star reversal pattern
  • The next resistance is located at the 10 mma = 1126
  • Above the 10 mma we have resistance 1 at 1192 and resistance 2 at 1308
  • The origin of the Ending Diagonal is located at 1390 which coincides with the 0.382 retracement of the decline from the 2011 top


Larger Image

Weekly time frame:

  • In addition the decline from the September 2011 top can be counted as corrective (Double Zig Zag)
  • In order to confirm the Ending Diagonal Gold has to breach the upper converging trend line, which coincides with the 50 w ma = 1153
  • If the 50 wma is breached and it becomes a support then odds should favor a large rebound and maybe even a major bottom


Larger Image

Daily time frame:

  • Last week Gold reclaimed the 50 dma and broke the resistance at 1090.
  • Friday's Inside Day is suggesting a potential short-term pause
  • If the 50 dma holds the next move up should aim at the 200 dma = 1140
  • It will be interesting to see how gold reacts to a potential oversold rebound of the stock market
  • A pullback should be viewed as a buying opportunity


Larger Image

 

Back to homepage

Leave a comment

Leave a comment