Half way pattern
I think we are half way in to this pattern in miners, gold and silver. We have another half way to go up before a major correction. lets dive into the charts
Starting with the US dollar Daily;
It has broken down and currently below the brown support and resistance zone (which is the top of the rectangular consolidation pattern – which you can easily see in the weekly chart).
I am showing new technical indicator called pivots in this chart. If you look closely you can see that price is below the pivot point indicating weakness. The target for USD seems to be the bottom rail.
USDollar Weekly;- we can clearly see that price action is contained within the top Blue line of the fork and the bottom rising purple line of the channel creating a bullish rising wedge pattern. Typically patterns point to the direction that the price will eventually breakout to.
USDollar Monthly: You can see where the support for this breakdown area is (that is the median line of the big purple fork)
Gold Daily Chart:- I am showing the half way pattern that I think Gold is in based on the price action of the dollar. I am showing two potential targets. Before it breaks out of the half way pattern we may get another dip down to the bull flag area. I have already taken long positions in our simulated aggressive portfolio. Typically pattern form a minimum of 4 points. Right now we have completed three points. If it comes down to the bull flag again it would be the fourth point.
Gold weekly:- This chart clears shows my thoughts for Gold for the next few months. Price should reach the top of the blue line by March or sooner. What one has to keep in mind is that if interest rates go up this year (fed has said they could potentially do 3 raises and that could drive gold price down…so wait and see on that).
Gold Weekly Pivots Charts: I am showing the pivots and currently price is pingponging between two pivots (typical and Demark). Homework for you is to read up on these pivots on google and stock charts. My sense is that price could test the bottom pivot before rally to R1,
Gold Weekly chart another view:- this shows the thought pattern
Gold Weekly another view shows the triangular formation that price is trying to fill out. Price may spike up to 1300 but will probably retrace later on as we have headwinds with respect to FED rates.
GDM Daily: The pivots show us that price action is currently bullish as it is above the pivots. I suspect that we could get a test of the pivots before moving on higher to R1, R2 etc.
GDM Daily shows the half way pattern that I am anticipating. look for a quick dip and then its is going to be off to the races. Target is the red median line of the fork.
GDM Daily: My original thought last week was that we would be in consolidation in the black rectangle but as we can see price has decidedly moved on higher. So expect a quick test to the neckine of the HS (black dotted line) before moving higher.
GDM Weekly; Shows that price has decidedly closed above the resistance zone. So now it is going to act as support on any backtest to the area before moving higher.
GDM Weekly line chart: Shows the action clearly and shows my thoughts for the immediate time frame.
Gold Daily: the busy chart shows that price is above brown shaded zone and the TRIX is turning so watch for price to move higher. It could potentially top in March timeframe.
Silver Weekly: Silver is showing similar setup as Gold. Expect a target of the median blue line.
Silver weekly shows the fork and pivot points. Price is currently above pivot point so it is bullish in the near term.
Silver daily: I am expecting a quick test of the bottom line of the bull flag before moving higher provided dollar moves down after its backtest.
Silver thought pattern in a clear chart.
Good luck Trading. Posted in public.
Krystar for PreciousMetalsForecast.com
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