Today’s chart 2-pack takes a broad look at Gold and U.S. Equities. Both assets appear destined for a resolution soon. Could they be headed in opposite directions?
Perhaps so… if these technical patterns play out according to the script. In the 2-pack below, we have a “monthly” bar chart for Gold and a “weekly” bar chart for the S&P 500 Index.
In the Gold chart, we have a bullish ascending triangle (point 1) and in the S&P 500 chart, we have a bearish descending triangle (point 2).
These are long-term charts, so the resolution of these patterns will likely be important to investors. For Gold’s pattern to trigger a bullish signal, it would need to breakout over the resistance line of the wedge. And for the S&P 500’s pattern to trigger a bearish signal, it would need to break down below its lower support line.
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These patterns provide guideposts for investors. Although they tend to be bullish/bearish, they can go in either direction. For instance, the ascending wedge pattern for Gold would fail if it breaks the lower trend line. And the descending wedge pattern for the S&P 500 would fail if it breaks the upper falling trend line.
Stay tuned, as the moves out of these patterns should be large and provide sizeable opportunities!
This post was originally for See It Market.com. To see original article- Click Here