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Monday, May 15, 2023

Gold Chart Updated & Added To The Public Charts Area

  I was doing a little extra charting over the weekend, and tweeted this: 

$SGOL is fundamentally the same thing as $GLD, and trades in lock step with Gold.

 I prefer to keep $GLD targets hidden, so I added the above chart to the Public Charts area.  

Looks Bullish 

The $SGOL is trading in a very aggressive looking upturned channel, and if this trend continues, then we could see physical gold breakout, as I mentioned in this weeks Newsletter - where I laid out the bull case for gold - and I even pinpointed the upside target. 

Not Bullish

The pattern on the chart only looks like a bullish channel to the average channel trader, but there is one glaring inaccuracy on the chart, and only someone who is experienced with Elliott Wave theory might catch it. 

The first pullback in November, resulted in a shakeout to a slightly lower low, and that rules out a wave 2.  Wave 2 actually took place a little later. 

$SGOL  - The chart below shows where the actual bullish channel was, and where the price action on gold was manipulated, back in early march; where it was driven back up into the channel. This was no accident. 

Now you see a second channel failure in April, followed by a second attempt at a channel repair, and gold beginning to struggle again. 

I don't believe I've ever seen the same broken channel repaired more than once, so I remain bearish. 

Take Care, 


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