The last time I updated our gold charts [see: Update on Gold, Jul 24, 2015] I noted that it looked like a good buying opportunity.
For those who are interested, however, it’s worth noting that GC just tagged that yellow .500 Fib level and the bottom of a fairly well-formed channel at 1072.3 that could mean a significant bounce. The initial target would be the neckline (1140) of the just-completed H&S Pattern (that targets 970.) If things really got going, 1285 looks mighty interesting.
As luck would have it, that was the bottom. GC spiked to 1140 within a month, a nifty 6.4% gain. At that point, it had backtested the bearish H&S Pattern that targeted 970. It could have fallen pretty dramatically at that point.
But, it didn’t. It rose to tag a trend line (dashed, purple line) off the January highs before dropping back below that neckline. Surely, at that point it would have continued on down to establish new lows.
But…it didn’t. It made its way back up to tag that very same TL all over again this past Thursday — where it reversed yet again. After five tags and five reversals, maybe that TL is telling us something.
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