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Gold hit the tops of its 10-year rising channel for the first time in 3 years on 8/22 at (1) above, which happened to reach my longstanding Gold target at the $1,900 level. Each time a certain situation took place, Gold backed off 20%…different this time around? (see $1,900 target/20% decline here). Since then it has created some wild swings inside of a $200 range. At the same time Gold hit the tops of its channel, Silver happened to reach a high as well at (3).
I chose GLD for the quiz last week, since the Power of the Pattern was suggesting a “Double Top” had been created (See post here)
Due to the situation in Gold, I find the flag/pennant pattern all the more interesting! Flag/pennant patterns the majority of the time suggest that a very large move will take place on a breakout/breakdown. Conservative players will want to own a breakout/short a breakdown when it takes place. Aggressive options/spread players, should have a ton of fun with this situation, because of Silver breaks to the downside here, it should reward them very well!!!