keep your rally caps on ....you to Bdog $1675 MUST HOLD IN ORDER TO PROMPT A BIGGER PRICE RALLY IN GOLD
As the current Pennant/Flag price formation in Gold nears the APEX level, it is important to understand that increase price volatility will happen and there is a possibility that another downside price rotation, possibly nearing $1675 again, could take place. It is important that the $1675 level continues to hold and act as support if this happens. If the $1675 level is breached, then the critical support level for Gold has been broken – which may suggest a deeper downside price move is possible.
In my opinion, I believe Gold will attempt to settle between $1700 and $1860 over the next 4+ weeks as we move closer to the November 15, 2021, True APEX date. The closer we get to that date, the more likely we are going to see increased price volatility in Gold, and a potential for a breakout price trend.
The Pennant/Flag formation, which I’ve drawn in Magenta on the Weekly Gold Chart below, has already completed four of the five total price waves. The 5th wave, in this structure, appears to be a bullish price breakout wave. This, along with what I believe will likely be an increased overall caution in the markets throughout Q4:2021 and into early 2022, will push Gold higher as traders move to hedge risks.
I wrote about the broader market trends and price patterns in May 2021. At that time I suggested a Momentum Base appeared to be setting up which could confirm the larger Appreciation/Depreciation market cycles. This research article was created before the current Pennant/Flag price formation started to form. Overall, the Momentum Base level in Gold is still valid and the new Pennant/Flag pattern suggests we are nearing a big breakout/breakdown trend in Precious Metals.
Over the next 12 to 24+ months, I expect very large price swings in the US stock market and other asset classes across the globe. I believe the markets are starting to transition away from the continued central bank support rally phase and may start a revaluation phase as global traders attempt to identify the next big trends. Precious Metals will likely start to act as a proper hedge as caution and concern start to drive traders/investors into Metals.