Will Gold Fall 15% On This Indicator?
Chris Kimble | Aug 08, 2018 02:05PM ET
Seven years ago this month the Power of the Pattern suggested that “gold could be flat-to-down for years to come!”
What did we see 7 years ago that would suggest gold was about to struggle for years to come? The Swiss franc has for years seemed to influence the price of gold and it was testing the top of a 20-year rising channel where it was creating a monster bearish reversal pattern at (1).
If you look back, the franc and gold both peaked together back in 2011 at (1).
The multi-year decline in gold and the franc have both been testing long-term support at each (2). With the trends for both being down, this support test looks to be one of the most important in the past 15 years.
Keep your eyes glued to the franc because if it breaks strong support at (2), the decline could be large because the long-term rising channel doesn’t come into play until around 15% below current prices.
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