Gold has rallied over the past couple of months, taking it to the mid-range of a 5-year falling channel at (1) above. This is a weekly chart and last week while hitting resistance, Gold might have created a potential “Doji Star” reversal pattern, at (1) above. This pattern took place, with momentum at levels not seen since the highs back in 2012.
This chart looks at 9-week performance of Gold since the 2011 highs. Each time Gold has rallied 10% or greater in a 9-week time frame, it has peaked in price over the past 5 years.
Gold may have created a “Doji Star” reversal pattern at falling resistance, after being up over 10% in a 9-week time frame last week. Over the past 5 years when this combo has taken place, Gold has peaked. Gold has just experienced its strongest 9-week rally since the peak in 2011. Will its results be different this time?
This is NOT a price point where Gold bulls would want to see Gold run out of steam! For Gold to do break its 5-year trend, it needs to break above channel resistance at (1) in the top chart.
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