After the historical decision of the Brits gold printed a terrible rally last week Friday.
I wanted to wait what's happening today on the stocks market and at the precious metals . Gold seems to be holding its gains. It seems to me that we are printing a pennant pattern and as stocks are falling price might break out to the upside.
The target price counted from the pattern is around 1400$.
Tomorrow I'm going to post a daily chart : we need at least one more day to make conclusions on the daily chart.
First of all I'm getting 100% convinced that at 1200$ (30.05.) we printed an Intermediate cycle low and we are in the 1st daily cycle of a new intermediate cycle. So it means there is almost 0 chance that we are going to break below 1200$.
The big question is if we printed a half cycle low (half of a daily cycle) on Brexit night or that was an early DCL .
If it was a HCL we will rally 4-8 days and we will be heading to the DCL : the low could be around 1260-70.
If it was a daily cycle low (DCL) we will rally 20-25 days and then the daily cycle low will be above 1300$.
I noticed in gold these pattern target price prices were working perfectly... So I tend to think that this pennant will work as well. In the HCL case price will run to the green TP area quite fast : in 4-5 days wit hthe falling stock market. In the early DCL case we will have a slower rally in 2-3 weeks.
But I'M quite sure gold is just consolidating right now before the next leg up. And in these moments we are almost tagging the pennant's upper line...
I wanted to wait what's happening today on the stocks market and at the precious metals . Gold seems to be holding its gains. It seems to me that we are printing a pennant pattern and as stocks are falling price might break out to the upside.
The target price counted from the pattern is around 1400$.
Tomorrow I'm going to post a daily chart : we need at least one more day to make conclusions on the daily chart.
First of all I'm getting 100% convinced that at 1200$ (30.05.) we printed an Intermediate cycle low and we are in the 1st daily cycle of a new intermediate cycle. So it means there is almost 0 chance that we are going to break below 1200$.
The big question is if we printed a half cycle low (half of a daily cycle) on Brexit night or that was an early DCL .
If it was a HCL we will rally 4-8 days and we will be heading to the DCL : the low could be around 1260-70.
If it was a daily cycle low (DCL) we will rally 20-25 days and then the daily cycle low will be above 1300$.
I noticed in gold these pattern target price prices were working perfectly... So I tend to think that this pennant will work as well. In the HCL case price will run to the green TP area quite fast : in 4-5 days wit hthe falling stock market. In the early DCL case we will have a slower rally in 2-3 weeks.
But I'M quite sure gold is just consolidating right now before the next leg up. And in these moments we are almost tagging the pennant's upper line...
Note
Nightstar is very true. If stocks keep on falling and the dollar would start its decline nothing will stand in the way of a gold rally. The only thing they will buy will be gold.Now I think the only thing because gold is consolidating is the strong dollar.
Note
How pattern target prices worked in gold:Note
Almost.Note
The pennant broke down. If it stays there and we break below the 200 MA on the weekly chart we are moving down to the DCL in the following 5-8 days.That would mean that the pennant is invalid.
Note
Weekly chartNote
I'M afraid the pennant is getting invalid.It depends how the daily close will be. Now it seems that it's a simmetric triangle that broke down.
The target price could be around 1275-80$.
Note
The pennant broke down, almost tested back. So I make the call for today the pennant pattern is not valid anymore.Target prices were working nicely in gold so I think we will start to go down to the daily cycle low in the following 4-8 days. It's hard to tell where this DCL could be the target counted from the pattern is around 1270-80.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.