Gold Bull Part II

Gold Bull Part II BY  for Northman Trader

I’ve received a lot of question on gold ($GLD) recently, hence time for an update on Gold. Remember big patterns take time to build and it takes patience to see these patterns come to fruition, although sometimes one does get instant gratification 😉
Case in point: On May 21 in Gold going Bull we posted this chart with Gold at $1277 with a technical target of $1520:

That target was reached only a few weeks later on August 7 when Gold hit $1520:

That was a massive 19% move in just 2.5 months.

While Gold initially retraced from that $1520 target (it was a technical pivot) it then even exceeded our target and reached $1566 this summer and has been retracing since then.

Many of the questions I received are centered around why Gold is not moving higher, is the bull phase for Gold over? To which I say: Patience everybody. Gold is not a dot com stock. The move from 1277 to 1566 was a massive 22% ripper. In process Gold became overbought and put in a negative divergence. A retrace not only made technical sense, it’s also necessary to prepare for the next bull phase if there is to be one.

And judging by the pattern Gold has been putting in since the summer highs it indeed looks to be preparing for another bull run in form of a bull flag/falling wedge:

What’s the flag/wedge suggest? Firstly that it eventually wants to break higher, but also that downside risk first is also in the pattern. This pattern is not confirmed yet and from my perspective still in the build phase and wouldn’t be confirmed until it sustains a break above the upper trend line. The downside risk can be defined by the .382 fib as support as well as the lower tend line.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.