Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Another Chart Pattern on Gold/Haligonian *PIC*

Here is the Gold chart once again. Big difference is while the downtrendline is still intact the horizontal support line at $1577 that created a bearish Declining Triangle is possibly a bullish Falling Wedge. The $1577 support was a breakout point in July and was successfully tested in Sept with the spike down. While price did blow threw it 'intraday' the close was above support and the next few days price respected this support area. After another lower high test of the downtrendline see price come back and breakdown below the 1577 support area with one close below in mid Dec. Price then had a dead cat bounce and sold off again and closed well below this support area breaking it and 'closing' below support for 3 full days. This put into question this support level and its signficance. Now look what happens when I draw a thick line across the early July high at $1577 and the lower high in June and the spike low in Sept and the lower low in late Dec. They all line up perfectly. This line along with the downtrendline form a bullish Falling Wedge. Nothing much changes as the downtrendline still has be be cleared to breakout and suggest a return to a strong uptrend again. But with a Falling Wedge breaking horizontal support isn't as bearish and the falling support line of the Wedge is support to buy at along with the likelihood of price to run up to the downtrendline resistance again. Ideally price will pullback to the lower support line of the Wedge for an ideal buy point. "OR" breakout over the downtrendline. Just thought you'd appreciate the different chart pattern that has developed on Gold recently.