Gold Triangles Break Upwards – Target $1,000?
There is so much talk regarding the US Stock Market triangle pattern, but did you know there were two recent triangles in the price of Gold?
Let’s see what happened:
The symmetrical triangle which formed through November until January broke to the upside as a continuation pattern and met its price projection target before reversing.
A new, ascending triangle has formed and price has potentially broken out decisively to the upside about 70% of the distance to the apex price.
If we use the price projection rule (that price is expected to move the distance of the triangle height), then the gold contract could move as much as $60 to $1,000 per ounce (which would serve as significant psychological resistance).
Ascending triangles resolve to the upside more times than not, and also we must take the preceding trend into account, which has been strongly up.
With the declining US Dollar index, increasing inflation, and potentially increasing economic uncertainty, it may seem that gold may be a strong bet for the near future. You can use ETFs to take advantage of a potential move in addition to the actual futures contract.
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