Gold daily Analysis
|GOLD
Gold has made a DT at 1437/39....now what we are seeing currently is the Gold has come down...to the break point..near enough....and has now traded sideways...The pattern is a bullish pennant....these are continuation patterns....and after Golds run up from 1275 it needed a continuation pattern to slow things down....to take a breath...Now there are measured targets from this pattern...the initial on is the highest point of the pattern...1439...to the lowest 1381...you subtract 1381 from 1439 leaving you with a 58$ differential... Now...add 58$ onto the break of the pattern...In this case 1439...and what do we get...1497...Now this is the minimum measured target....what in reality we are taught is that the length of the pole can be a measured target also..so we do the sums again...this time taking it further apart...thus...1439 minus 1275 = a 164$ move...add 164 onto 1439 and you get a long term target of 1603....Now..before you all have a fit...remember...we have come up from 1275 end of May....sooo to break to 1603 within the next couple of months is not out of the question...The really important point to note about Gold is this...it was in a major uptrend...only since 2013 have we traded sideways....weve broken that....we returned to the break point thus giving you another chance to go long...got out of breath...having a bit of a rest...then off we go again...now is can stay in this continuation sideways band for only another few weeks ..max...continuation patterns are quicker than topping patterns....topping patterns take longer to form...so stay within the defined lines Iv drawn..trade the range..ready to buy the break
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