Our research team at Technical Traders believes that gold will continue to base below $1,320 for at least another 3-5 weeks before setting up a momentum price base. Our research suggests general weakness in the US stock market over the next few weeks/months as a head-n-shoulders pattern unfolds. Interestingly enough, our research also indicates that gold may continue to base below $1,320 (likely below $1,300) for at least another 2-4 weeks before forming a rounded bottom type pattern as a base.
This would likely result from a mild price rotation in the major US indexes and possibly weakness in the US dollar. Indeed, weakness in the USD and equities markets may be just enough impetus to cause gold to rotate into the momentum basing pattern we have been expecting since January 2019. We've highlighted the price range on the chart below in purple. We believe that gold will re-enter this range at least once or twice over the next 2-4+ weeks to set up a basing pattern. After April 21, we believe the basing pattern should be complete and a new upward price swing should begin.
We plan to target opportunities below the $1,300 price level to accumulate a LONG position ahead of the upside breakout. The opportunity for prices to stay below $1,320 and for skilled traders to pick entry levels that are suitable for their futures should not be underestimated. Gold's next upside price leg will likely see prices well above $1,450.
Take advantage of any price levels below $1,290 because this may be the last time you see them for a while. We have also been sharing our stock-market forecast looking forward 1-3 weeks from now, which goes against everyone's bias/sentiment including yours likely, but is something you should think about because you could give back a lot of profits if you don't act now.