Hall of Famer Yogi Berra certainly played well on the field. But he might be better remembered for some of his quotes off of the field. One he is noted for is saying ‘Its like deja vu all over again”. Classic Yogi Berra. And today it applies to gold.
The shiny yellow rock is showing investors a repeating pattern. After a run higher from a low in December, gold consolidated from February through April. Then it pushed to a new high to start May before pulling back to the bottom of the consolidation range. The Bounce from there took it back to the top and then it retraced about half of the move before jumping higher in June.
The same price action has played out, albeit with a smaller range, since that gap higher. The same drive to a new high and pullback to support followed by a retest of the high and pullback of about 50%. And here it is. It is said price action is fractal in nature. It can be divided to smaller and smaller pieces and patterns emerge. I am not enough of a quant to know if evidence exists for this, but the current price action certainly is very similar. Will it play out the same way with a gap higher and a new range?
Finally I apologize for putting a Yankee in my post, but hey, he is from New Jersey.
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