Despite Pullback, Gold’s Mega-Breakout Is About To Unfold!
Despite Pullback, Gold’s Mega-Breakout Is About To Unfold! from King World News
After what has been a chaotic start to 2018, gold’s historic mega-bullish breakout is close to unfolding!
February 21 (King World News) – Many KWN readers around the world had been wondering why gold has been in such a tight trading range with frequent takedowns, so we published this piece last Friday. What we did not include was the (updated as of Feb. 15th) look at the daily gold chart which showed a cup and handle breakout close at hand, despite the recent volatility (see chart below).
Daily Chart “Cup & Handle” Will Propel Massive Gold Breakout!
The current inverse head & shoulders pattern (updated as of Feb. 15th) seen on the gold price chart below is incredibly bullish. Meaning, what we have been seeing recently is the calm before the storm (see charts below).
Very Powerful Inverse Head & Should Pattern On Gold!
Here is a long-term look at the mega-bullish inverse head & shoulders pattern on gold. Notice the 2011 downtrend line has already been broken on the upside and the buy volume has been massive (see chart below).
Gold’s Mega-Bullish Inverse Head & Shoulders Pattern!
Turning to the US dollar (updated as of Feb. 15th), the chart is extremely bearish. This has to do with the fact that the Chinese are about to launch their own oil contract priced in yuan. This is bad news for the petrodollar and that’s why the chart is so bearish for the dollar. Notice the dollar is very close to breaking below the 2013 high (see red dotted support on chart below).
China Attacking Petrodollar…Bad News For US Dollar!
The Bottom Line
The bottom line here is that as pessimism in gold, silver, and the mining shares, crescendoed at the end of 2017 and in the second week of February, it was met with large volumes of smart money buying out of the East (for physical gold and silver), and (on the mining share side) by insiders of high-quality mining and exploration companies. Remember, the cash flows of the high-quality mining companies are already at an all-time high (see chart below).