Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Special Update…

Commodities / Gold and Silver 2016 Mar 04, 2016 - 02:33 PM GMT

By: Rambus_Chartology

Commodities

Last week I showed you a daily line chart for GLD which I called a coiling triangle as the price action was getting more compressed as it traded toward the apex. This daily line chart shows the breakout and backtest. Most technicians are aware of the triangle consolidation pattern but its implications may not be understood by most.


Now I would like to show you a daily bar chart for gold which shows you the power of this particular triangle. If you recall last week I showed many bullish rising wedges in many of the precious metals stocks that looked very bullish. They have morphed a bit but the essence of the bullish rising wedges are still there. This brings us up to the triangle that has been forming in gold. Just like all the bullish rising wedges we looked at on many of the PM stocks, gold has formed it own halfway pattern which is the triangle that everyone now sees. What makes this triangle halfway pattern so important is the way it formed. Whenever you get a vertical move in a short period of time that is called a flag pole. The price action then consolidates that vertical move with a small, usually less than three weeks, flag, wedge or triangle. In gold’s case it formed a triangle.

There are several ways we can measure out for a price objective. The first method on this daily log scale chart is what I call the BO to BO, breakout to breakout method. The measurement starts at the breakout of the lower consolidation pattern which in this case is the bullish rising wedge, up to the first reversal point in the blue triangle halfway pattern. You then take that measurement and add it to the breakout point of the blue triangle halfway pattern to get your price objective which is up to 1391 black arrow.

The other measurement technique I use is the impulse method which measures the impulse move from the lower consolidation pattern, again the blue blue bullish rising wedge, which starts at the last reversal point before the breakout. Take that measurement and add it to the last reversal point in the blue triangle halfway pattern to get a price objective up to 1382 as shown by the blue arrows.

Below is the same chart but this one is in linear scale. The linear scale measures out about ten points lower but it still measures up to the 1400 area which is a nice big round number that should offer some resistance on the initial hit. If you look at the move leading into the triangle halfway pattern, which is nearly vertical, we should see something similar as the price action leaves the blue triangle in time and price.

Lets look at one more piece of the puzzle using the blue triangle as a consolidation pattern. Below is a six year bar chart for gold I’ve shown you many times which shows the breakout above the top rail and the backtest that has been taking place. That backtest area, just above the top rail of the bullish falling wedge, is the blue triangle consolation pattern we just looked at on the daily charts above. From a Chartology perspective all the clues are now in place for another impulse move higher. Gold is just now breaking out from the massive four and a half year consolidation pattern.

When you look at this long term weekly chart you can see where the first real area of resistance comes in which is the bottom rail of the blue rectangle that formed the first consolidation pattern with the bottom rail coming in around the 1530 area. So what the price objectives are suggesting and the first real area of resistance at the 1530 area shows it will be interesting to see just how high this impulse move goes. Gold may very well form another consolidation pattern just under the 1400 area that will lead to a move up to the underside of the blue rectangle at the 1530 area. One step at a time.

Some folks are worried that the indicators are all getting overbought but in moves like this they can give you a false sense of security as they can get embedded and just go sideways until the move finally runs its course. The bottom line is that we’re experiencing something very special here. It’s like we’re in the top of the first inning of a new baseball game and the bulls are up to bat. Once the bulls side is retired it will be time for the bears to play their bottom half of the first inning. The game is just getting started folks.

All the best

Gary (for Rambus Chartology)

http://rambus1.com

© 2016 Copyright Rambus- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Rambus Chartology Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in