Thats Worth A Double Take
May 27
As I speak , Gold is down $13. Is it breaking down from this triangle pattern that has formed over the past month? Quite possible- Most have heard that a triangle pattern is a “continuation pattern” and that follow thru is in the direction that the pattern started in. So Question is: Was Gold moving UP or DOWN when it started the Triangle?? Many expect GOLD to continue DOWN from here, since it appears that it entered this triangle as it headed down .
FOR EX: This is what the continuation pattern looks like in action. Heading up into the triangle pattern, it broke out upside.
EVEN THOUGH GOLD is selling off now , and looks to be follow thru to the downside, I wanted to point out something that I found interesting and AT LEAST WORTH A DOUBLE TAKE
Whenever I posted that Gold might drop from here, a trader kept saying to me “Its in a Big “W” Pattern” – I’m not going to mention his name now, in case the pattern fails ( I’m not here to point out that someone was wrong – I’ve been wrong plenty of times in the past) the key is to be flexible. I WILL, however , do a follow up & give him credit by name if the pattern works out because upon researching it further … I see that there is a chart where the exact same pattern forming in Gold right now Broke Out to the Upside. THAT is worth a double take.
Check out the 2 charts below and you will see that in the example of “The Big ‘W’ Pattern” actually playing out, the set up is almost exactly like I see in GOLD now. SO with GOLD down $13 and looking like its ready to follow thru to the downside , a “CONTINUATION DOWN” out of the triangle, I present you with something AT LEAST worth a double take.
Follow A to B to C to the Triangle pattern in ASF here. A continuation should have gone south, right? (Then it broke out UPSIDE) Then look at A to B to C to the triangle pattern in Gold. I did a double take
I just wanted to share this since I was expecting a break to the downside toward the “C” area on the above chart. It would then form A LARGE base for Gold to then break higher from. Almost EVERY Newsletter on 321Gold and other areas has a break down in Gold projected also. I could NOT find a bullish one and I am usually very happy to be a contrarian under those conditions, so this is a Contrarian view. Imagine if this was a “SHAKE OUT” & Gold reversed higher? Its not likely, but MANY MANY would be short this morning & amazed.
If the break down is real, it should last for days emerging from that triangle, “testing The Dec lows” area and Money will be made on the short side. If its a shake out, it may become a short covering rally. At this point, It looks like a sell off is starting, but It will definitely be interesting to see how this plays out and worth staying alert to the possibilities.
As I was writing GOLD dropped to down $17 , Thanks for reading – ALEX
