Gold In Euros And British Pounds
Trader Moe | Feb 07, 2016 01:28AM ET
When Priced in Euros, Gold is Likely to Put in a Squeaker New All-Time High
The long-term gold chart looks very different in euros and British pounds than it does in dollars.
In euros, gold is working on a megaphone right shoulder for a big head and shoulders top. That would usually mean a squeaker new all-time high.
Gold is just completing a megaphone at VWAP of the larger red right shoulder megaphone. It should put in a new high for that smaller megaphone, retrace to its VWAP, and then take off in a 5th wave melt-up for the new all-time high.
So if you’re long gold in euros, you may have to put up with a little more sideways price action, but then gold is likely to melt up to the red megaphone top and break out through it to put in a topping formation on its top.
Gold in British Pounds is Forming a Much Tighter Megaphone Right Shoulder
Gold is putting in similar price action when priced in British pounds, but the right shoulder megaphone is a lot smaller and tighter. This megaphone needs a melt-up 5th wave to its top, but afterwards it’s likely to actually break out downwards.
Gold could also spend a prolonged period–even years–forming new interior megaphones across VWAP of the blue megaphone, ultimately forming a triangle right shoulder on the big H&S before breaking out downwards.
I would not want to be long gold when that H&S finally breaks out through its neckline.
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