Gold – the perfect bullish flag formation completing
Gold:
As I draw more imaginary lines onto charts I am struck by the almost perfect linearity of the flag formation forming in gold at the moment.
Look at the way the lines go from the day low on 12/12/17 and rise to the day high on 25/1/18 forming the pole and then there are two nested flag formations, one marking out the intraday highs and lows and the other marking out the day close prices (with the exception of the last high which closed within the intraday flag formation that I've drawn). The formation is almost perfect, with all of the lines creating a perfect flag pole and flag. This is a highly bullish formation and the consolidation within the flag has been quite drawn out, which would mean the upward movement when it does break out will be powerful and significant.
In pink I've drawn a couple more possibilities, suggesting that we might fall back again to some interesting levels, almost exactly 1300 on 1st April before the big move starts. Of course this is all pure speculation so far, but you can't deny how this scenario would nicely complete the bullish flag formation.
As I've said in previous posts, everything else is lining up for this move. The major stock markets appear to be again looking into the abyss after a minor bounce over the last couple of days.
Silver is again setting up for a possible pull back looking at the day close trend lines from December 2016 (intraday lows ignored). If silver took a dive over the next day you could draw a straight line down to $16.00 on 1st April where it would hit the up trend line.
Silver:
The markets are closed over the long Easter weekend so maybe this move will play out today and tomorrow, hitting lows, before markets open again on Tuesday when the big bull market in precious metals resumes. The April 1st joke will then be on us, or I could again just be drawing imaginary lines.
For disclosure, I'm not a professional advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.