Gold has Maxed Out the Waves Down in its Red and Silver Price Channels – Must Start a Bottom or Continuation Pattern Here.
Gold has maxed out the waves down in a price channel and roll-up price channel (red and silver in chart above). That means it has just started a bottoming or continuation pattern.
I’ve drawn a megaphone (green) and inverse head-and-shoulders bottom (purple) on the chart, but gold could also form a triangle here or a falling megaphone bottom. The green megaphone could also put in fewer waves and stay smaller and tighter than drawn.
I Drew This Long-Term Chart a Few Weeks Ago but the Scenarios are Still the Same.
An inverse head and shoulders here that breaks out upwards could lead to a breakout from the big inverse H&S/blue megaphone on the chart above (purple scenario).
If instead gold forms a bottoming megaphone here that breaks out upwards, it could be part of a larger megaphone (green scenario) that will form a series of megaphones inside megaphones across 1200, drawing a continuation triangle on the chart before a plunge to the blue megaphone bottom.
Gold could also form a megaphone here that breaks out downwards into a falling megaphone that takes the price more quickly to the blue megaphone bottom.