My friend Josh Brown shared the headline above, asking if “Gold could lose $500 per ounce?” This idea was based upon a Power of the Pattern chart I shared with him. At the time of this posting Gold was trading at $1,611 per ounce. I ended up being wrong, as Gold did not drop $500 after sharing the chart with Josh. It did end up finding support after falling around $400 per ounce. See full article from Josh (HERE)
So much for the past….What is the Power of the Pattern reflecting in Gold Now?
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Gold’s decline from $1,900 per ounce that started back in 2011, found dual support based upon a 15-year trend channel and a 12-year rising support line at (1) above.
Could a bullish inverse Head & Shoulders pattern be forming at these support lines? Very possible!!! What would negate this potential? A break of these support lines. It appears to me that a pennant pattern in Gold could be nearing an end!
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