Gold Breakout Pattern To Watch For

Adam Taggart
By Adam Taggart on Thu, Jan 28, 2016 - 12:59pm

I received the following today from Robert Mish, the 50-year veteran bullion dealer we've interviewed on this site in the past.

Thought the group here would appreciate his seasoned perspective:

If this move in Gold is for real, the following is a common technical pattern to happen in sequence:

  1. gold breaks out over former R at $1111   (happened)
  2. gold gets ST overbought  (happened)
  3. gold corrects to test the breakout level   (happened this morning)
  4. gold rallies higher than prior, testing the 200 day moving average (now around $1135)
  5. gold consolidates at or slightly above the 200DMA then runs higher again.
  6. gold works it way to major resistance wherebreakthroughs cause short funds to exit ($1180, $1225 then $1300 areas), and breaks out again, triggering a big run.
  7. selling dries up on dips thereafter as gold climbs a “wall of worry” in a new bull market

____________________________________________________________

A  gold close back under 1111, especially under 1100 suggests that it is still not time yet for a gold bull move.

 

Note: If you're reading this and are not yet a member of Peak Prosperity's Gold & Silver Group, please consider joining it now. It's where our active community of precious metals enthusiasts have focused discussions on the developments most likely to impact gold & silver. Simply go here and click the "Join Today" button.

Login or Register to post comments