Gold coiling up for a big moveIt's been a long time coming but it looks like the Gold break out is getting very close now.
On the chart there is 2 visible wedge patterns, one takes the extremes / outliers into account (trend lines marked in white) and the other excludes the outliers (trend lines marked in yellow), both are near the end.
There is further confluence with the OBV indicator also in a tight wedge pattern. Using trend lines on the OBV is great for picking breakouts and breakdowns in price. Question here is which way will it break???
With the economy slowly turning to poo there is a strong fundamental case for increase in Gold prices but another clue may lay in the Fib Circle chart that I have used. With the Fib Circle centred at the 2016 low this chart shows that at each new band the price has had two distinctive reactions. First the price typically touches or goes marginally across / through the band and then has a fall, there has been only one band which had some consolidation but no major fall. The second reaction after the fall, when price has somewhat stabilised and moved into the new Fibonacci Zone the price then strongly climbs up again. It has only been the most recent run (within the grey Fib zone) that has experienced price falling back deeper than the original dump when it moved into this new zone.
To sum up I'm bullish on Gold. Price has just entered a new Fib Circle Zone and I think a breakout to the upside within a month (or perhaps two) is highly likely and then a run up to make new highs could follow.
