Gold – The Long Term Trend May be Reversing

By | February 23, 2016

Gold is breaking above the top end of the declining channel pattern it has been trading in for the last three years, and may be in the process of reversing the long term downtrend.

99987.GLDweeklychart

99987.GLDdailychart

The daily chart shows a recently formed symmetrical triangle consolidation as a component of a larger pennant formation. A breakout from this bullish continuation pattern projects a price target measured by taking the height of the flagpole and adding it to the pennant breakout point. It is a very ambitious projection that would take the spot price back up to the $1380 area and retrace 38% of its 2011 high and 2015 low range.

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