According to Adam Hewison of Market Club, Gold prices are showing a “Classic Pattern” that we should take note.
He has prepared a short video from his Traders Educational Whiteboard Series entitled “A Classic Pattern in Gold” which walks you though his analysis and shows some of the capabilities of the Market Club charting software and strategies.
Hewison states:
(Regarding whether the recent action is a longer term pullback/retracement or reversal) “… depends on how the European Banks handle some of the problems they’re going to face in financing.”
Hewison takes us through the longer term, monthly trend down to the daily chart and reveals a most interesting pattern that I missed in my analysis - it’s a pattern that I frequently overlook because I’m not used to ‘thinking in reverse.’
He then describes the pattern and how the price is expected to play out, including possible price projection targets.
Here is an example of the “Weekly Chart, which we use for Trend Analysis” from the video (links to video):
The final chart walks us through the exact pattern, trendline, and price projection and is very interesting and helpful analysis.
