Chaos Clinic for 12/6/2019

My 11/30/2018 Chaos Clinic pointed out that the gold Exchange Traded Fund GLD looked like it was going to rally. Now, a year later, it is poised to rally more.

The top chart shows an 8 hour bar chart covering 20 months. For the move starting at point 0, prices have traced out moves 1, 2,3, and now 4 of 7 in an up Chaos Clamshell. Inside each of these moves are smaller 7 move fractals.

A rainbow of exponential moving averages helps indentify moves. On this chart the 288 bar EMA filters a 96 day cycle. At move 2, this average was penetrated slightly, but at 4, prices have held above the 96 day EMA. This helps confirm move 4, and also indicates that the move is gaining strength.

The second chart is a multi-year daily chart of GLD. Overlaid on it is the 12.8 year Jupiter-Neptune astro cycle.That cycle shows up as a square in the US gold futures natal chart. The turns are on the squares of the cycle. That this is a valid cycle is shown by the behavior of the 720 calendar day tracking EXMA.

Traders should proceed at their own risk. Stops should always be used. The EXMAs provide stop guidance. On the top chart, a stop under the 96 day EXMA should work,and on the second chart, one under the 720 day is advised.

 

 

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.

Be sure to sign up for the free weekly email! 

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

Bears ignore Aussie holidays, cheer coronavirus news at fresh multi-week low near 0.6815

AUD/USD drops to 0.6814, with an intra-day low of 0.6811, during the early Monday morning in Asia. The fears of China’s coronavirus outbreak are dominating the market’s risk sentiment off-late.

AUD/USD News

USD/JPY: Coronavirus bearish gap breaks below 109

USD/JPY has dropped heavily in the open, breaking below the 109 handle to print a fresh low of 108.88 as traders prepare for a risk-off week when considering the implications of the Coronavirus. 

USD/JPY News

Are you anxious about Coronavirus? Well, so are the markets

There's so much we don't know about Coronavirus, which increases the level of concern from public health officials, you & I as well as the markets and we can expect a risk-off start to the week ahead of a pretty major schedule.

Read more

The Week Ahead and Why the FOMC Meeting may not be the Most Interesting

The week ahead is arguably the most important here at the start of 2020.  The Fed and the BOE meet. The US and the eurozone report initial estimates of Q4 19 GDP.  The eurozone also reports its preliminary estimate of January CPI. 

Read more

GBP ends week on a weak note despite upbeat PMI data

The GBP/USD pair spiked to its highest level since January 7th at 1.3174 on Friday with the initial reaction to the upbeat PMI data from the UK. The pair could remain choppy ahead of BoE’s policy decision. 

GBP/USD News

Forex Majors

Cryptocurrencies

Signatures