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.blog comments powered by Disqus
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 »