Gold Looks Ready To Rally
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A month ago I did my Chaos Clinic on Gold, specifially the exchange traded fund, GLD. I said GLD was in a congestion in a larger up Chaos Clamshell. I suggested that the congestion could end near April 4th.
This chart shows that the congestion has formed as anticipated, but that it has extended until about April 21st. April 4th was a support date, and a minor rally followed, but the congestion continues to be bound by the red triangle shown.
This still looks like a buying opportunity. Prices are now near 122, near the bottom of the congestion. A protective stop should be placed at 120.
I have added two EXMAs to this chart, a 144 and a 288 bar. The 288 bar is support for the congestion, and can be used as a stop guide. Note that as GLD began its rally, the 288 EXMA stopped it at point 3, then provided support at minor point 4. The 288 bars translates into a 96 trading day average. This suggests a longer term move.
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