Gold has confirmed a new price channel (pink on chart) at VWAP of a megaphone (bright blue) that it has been forming since late last year.
The new price channel is at the top of a bottoming megaphone (silver on chart), which is legal for a breakout upwards.
Gold has already pierced the top of its new price channel and put in a partial retrace within the channel. A breakout from here into a steeper channel would suggest a melt-up to the blue megaphone top. (The existing top would likely be redrawn roughly as shown on chart.)
If gold continues retracing into its price channel all the way to the price channel bottom, it suggests that gold will be forming a megaphone across the blue megaphone VWAP before deciding what to do. It would cancel the immediate melt-up scenario.
Disclaimer
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