Since the gold ETF GLD was discussed in the November 30, 2018 Chaos Clinic, it has completed the forecast 7 moves in an Up Chaos Clamshell. This is shown on the chart above. In November, I expected the rally to last "into February."
The rally was steeper than I expected, due to move 5 becoming a 7 move Up Chaos Clamshell itself. This is shown by the red boxed numbers 1-7. This is a good example of the fact that move 5 in a Chaos Clamshell is often the largest and fastest and best to trade.
The moves 6 and 7 were quick, with move 7 being an obvious blow off. From there prices dropped sharply into March 6th.
So what now? The most likely pattern is a consolidation, before further advance. I think the approximately six month rally from August to February is move 1 of a much larger Chaos Clamshell. This is shown by the green boxed number 1.
One way to estimate the duration of this consolidation is to anticipate that it might look like the August through October 2018 move, outlined as a red triangle. This triangle has been copied to the end of the chart. It suggests GLD could congest until about April 4th.
If prices do this, it could be a golden opportunity to buy gold for further advance near the end of the triangle. Purchases can be protected with a stop at 120. The GLD Exchange Traded Fund is my preferred vehicle, since it can be traded by small accounts. .
To learn more about Chaos Clamshells, I suggest my Cash In On Chaos course, available at Moneytide.com
This content was published on Dr. Al Larson's Chaos Clinic which you can attend each Friday for free.
Dr. Al Larson has developed a complete Chaos Model of Markets, four unique courses that let you become a Certified Chaos Trader, some very unique eMylar fractal pattern overlays, and tools that permit forecasting individual stocks and markets years in advance. You can also sign up for a free weekly email, and attend a free Chaos Clinic on Fridays. To learn more, click on the author's profile.
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Information on this page contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions.