Appears to be a fractal bull-flag formation on SPDR gold daily chart.
Also appears to be following a parallel channel.
Two distinct forms since 2020
Form 1 began with the kung flu crisis in April 2020. Hit the bottom of the channel at S1 (156.82) and rallied by 13.82%. It failed to breach the channel upper-boundary and began form 2 from there.
Form 2 began with the rejection at the top of the channel and has since followed the mid-line of the channel forming the 2nd bull flag.
My theory is that the flag form will lead to another test of support at S1 (156.62) and presuming we have another 13% rally from there we will breach the downchannel to the upside and
In principle resolution of this form should lead to a breakout of the downwards channel.
The breakout will re-test the resistance at 178 and likely break through it on a successive attempt presuming support at S1 (156) holds.
Upside target from there is 194.
This market is adhering to a rough fibonacci time outline so I expect to see this setup resolve within the last quarter of this year.
Entries around 156 exits around 178. Aggressive traders could also try for 194.
Also appears to be following a parallel channel.
Two distinct forms since 2020
Form 1 began with the kung flu crisis in April 2020. Hit the bottom of the channel at S1 (156.82) and rallied by 13.82%. It failed to breach the channel upper-boundary and began form 2 from there.
Form 2 began with the rejection at the top of the channel and has since followed the mid-line of the channel forming the 2nd bull flag.
My theory is that the flag form will lead to another test of support at S1 (156.62) and presuming we have another 13% rally from there we will breach the downchannel to the upside and
In principle resolution of this form should lead to a breakout of the downwards channel.
The breakout will re-test the resistance at 178 and likely break through it on a successive attempt presuming support at S1 (156) holds.
Upside target from there is 194.
This market is adhering to a rough fibonacci time outline so I expect to see this setup resolve within the last quarter of this year.
Entries around 156 exits around 178. Aggressive traders could also try for 194.