Gold – a potential waterfall event
- Posted by PeterLBrandt
- on May 30th, 2012
The Gold market is on the verge of declaring its next $250 move
The major trend on the weekly chart has been broken, as shown by the weekly graph below.
Since September the market has traced out a massive descending triangle. These are very reliable patterns. A decisive close below $1500 would complete this pattern and establish a target of $1241.
Explosions often need a blasting cap to set off the main charge. Markets can behave like this sometimes. Small, seemingly insignificant patterns, can set off a enormous blast. The daily chart displays a small pennant formation. This small pattern could become the blasting cap. A close below $1530 could spark the blasting cap.
One caveat — the small pennant would become a symmetrical triangle bottom if Gold can close above $1585. This would indicate that the lower boundary of the descending triangle will hold for now.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Peter Brandt entered the commodity trading business in 1976 with ContiCommodity Services, a division of Continental Grain Company. From his start in the commodity industry, Peter's goal was to trade proprietary funds. But, he first needed to learn the business. More » 
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