Gold Just Gave a Tell that it’s Likely to Keep Megaphoning Across 1250
Gold just tagged the bottom of its red rising megaphone and may break the bottom by a bit. That means gold just ruined its chances of forming a proper head-and-shoulders top inside the red rising megaphone.
That usually means that gold is settling in for extended megaphoning across 1250, which usually means a triangle is forming (green scenario).
The purple scenario is gold abandoning the red rising megaphone to form a simple or complex head-and-shoulders top across 1250 for the move up from the December 2016 low. That usually sets up a crash to the bottom of the big navy blue megaphone.
The purple scenario is unlikely, but if you see it, that crash into the 700s would be a strong setup for a fast move to at least the navy blue megaphone VWAP and most likely its top.