What worries us about gold is the forming of what appears to be a descending triangle. Naturally, we don’t want to see that, but if that bottom end near $2,000 falls out, the fall could be a drop to $1,835.
Gold should break free from $1990-$2060 wider trading range and form a new range over the next two weeks. Spot gold has to trade over $2028.00 to rise to $2047.60 and $2064.00.
Clearly Gold’s baby blue dots of trend consistency are directionally neutral, whereas the Profile suggests trading support in the 2030s, (but we’re not holding our breath).
The coming gold-futures buying alone will push gold much higher. The euphoric AI stock-market bubble should soon roll over, which should also boost gold investment demand.
We make plays on NUGT, DUST, JNUG, UCO, and other key leveraged ETFs, as well as some individual stocks. Tight stop losses on every trade keep drawdowns in check.
On this weekly line chart, gold is consolidating what appears to be a major breakout from a broadening formation. The top of the formation is the key $2000 price zone, making this breakout a very significant event.
