Gold to go to $700? #GOLD
I know this will be controversial but I have noticed that there's a series of cups and spikes in this chart. The top of each cup always forms at approx 350% and each spike goes no more than 650%. We seemed to have reached the top at 650%. The bottom of the cups are always formed at approx 172% from the previous bottom of the cup. Looks like there may be a double top formed in gold and it has overshot and as a result, another cup is due to form on the line below where it has formed presently, satisfying the chart requirements of the top of the cup being at 350% and the bottom of the cup being at 172%. This would take gold price down to $650 / $700.
My theory to support this chart pattern is that we have just had the largest quantitative easing in history. QE can devalue a currency. Inflation is lurking in the background and unemployment is teetering on a cliff edge due to furlough support. Interest rates have been unprecedentedly low for such a long time. In order to revalue currencies and combat inflation / stagflation, interest rates may have to surge. When the dollar rises, gold falls. I have also noticed that it has not entered an oversold period with the oversold stoch at 1.75 since 1996.
I'm no chartist, I'm only a beginner, I am just merely sharing a pattern I have spotted.
My theory to support this chart pattern is that we have just had the largest quantitative easing in history. QE can devalue a currency. Inflation is lurking in the background and unemployment is teetering on a cliff edge due to furlough support. Interest rates have been unprecedentedly low for such a long time. In order to revalue currencies and combat inflation / stagflation, interest rates may have to surge. When the dollar rises, gold falls. I have also noticed that it has not entered an oversold period with the oversold stoch at 1.75 since 1996.
I'm no chartist, I'm only a beginner, I am just merely sharing a pattern I have spotted.
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