Peak Theories Research shares their latest technical observations on the gold price chart:
- In complete contrast to my views on gold in January, I think there are strong technical reasons to think that we may, in fact, see gold move up in the near- and intermediate-term.
- First, I now believe that gold’s trading action of the last four months was that of a complex Head and Shoulders pattern that fulfilled itself perfectly last Thursday.
- Second, gold’s perfect fulfillment of that pattern came right above the 150 DMA which has supported gold in some of its other dramatic declines.
- Third, this fulfillment also came on a Spike or even Pipe Bottom and this suggests that gold’s recent low of about $1,308 per ounce will act as a strong crux of support for a move up by gold.
- Encouraging to all of these technical aspects was gold’s move above $1,348 per ounce yesterday and it is important that this level holds in the near future.
- So long as it does, I am increasingly of the view that we’re likely to see gold trade up in the near-, intermediate- and long-term as is consistent with the primary bull market in gold.
Full report (pdf):