Gold Could Be Forming 9-Year Bullish Cupping Pattern

Published 07/31/2020, 11:27 AM
Updated 07/09/2023, 06:31 AM

Is gold forming another long-term bullish cupping pattern? Sure could be.

Is the long-term pattern complete? If history is a guide, it would suggest not yet.

When gold attempted to break above its 1980 highs, it first needed to form a “handle.” It did so by declining around 30%, which most likely shook out a good deal of gold traders, thinking that a double top was forming.

Gold is currently testing its 2011 highs at (2), where it looks to be forming a bullish cupping pattern over the past 9 years.

Gold is attempting to breakout above the 2011 highs and sends a very bullish message. If history is a guide, it is possible that a handle needs to form first.

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