• 12 hours Cannabis Sales Are Soaring In The United States
  • 2 days Biden Will Be A Boon For Solar Stocks
  • 3 days The Shroom Boom Is Here To Stay
  • 6 days The Gold Rally Has Finally Run Out Of Steam
  • 6 days Citibank Analyst Predicts $300k Bitcoin By End Of 2021
  • 9 days Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 9 days 14 Million People Will Lose Unemployment Benefits On December 31st
  • 11 days Why 12 Million American Millionaires Isn’t Good News
  • 12 days Big Oil Is Paying The Price For Investing In Renewables
  • 13 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 14 days Did Amazon Just Democratize Prescription Drugs?
  • 15 days The Private Space Race Just Got Very Real
  • 17 days Short Sellers Are Willing Big In This Turbulent Market
  • 18 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 19 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 20 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 21 days Black Friday Could Be Retailers’ Only Hope
  • 22 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 23 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 25 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
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