Gold has been in a congestion since late February. That congestion now looks to have ended. This 8 hour bar chart is for the gold Exchange Traded Fund, GLD. Gold futures prices are ten times larger.
Since the August 18th 2018 low, gold has now made a major move 1 and 2, as shown by the green boxed numbers. Moves within these major moves are numbered in white. Major move 1 is a Chaos Clamshell. Within it, move 5 expanded
into its own 7 move Chaos Clamshell as shown in the small red boxed numbers.
Move 1 ran for 16.2 points. Move 2 was 7.66 point, about a 47% retracement. Treating these moves as A and B of a simple ABC, and using the common projection of A=C suggests a target price of 135.75.
From the 8/16/2018 low to the 4/23/2019 low is 250 calendar days for two of the 7 moves in a Chaos Clamshell. That would project 875 days for the complete pattern, reaching to 1/7/2021.
More details of the development of this pattern can be tracked by overlaying my Fractal of Pi pattern, from my course by the same name. This course is a sequel to my Cash In On Chaos course. This pair of courses are a good starting point for learning how chaos works in markets.
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.