Tech Musing

I have been bullish on Gold since 2013 and every time I thought gold will break out it didn’t. In my previous post on gold, I wrote “we look at the daily chart of gold, we can clearly see time correction playing out. Since gold made a bottom in 2012 it had been almost 5 years since gold prices have been consolidating at these levels. If we look at the long-term structure of gold (in the yearly chart) gold had a 10X rally from 2001 – 2011 and since then it fell by 50% (price correction). So gold has completed its price correction and time correction. Look at the given chart I don’t see any reason why gold will not break out from these levels and surprise everyone on the upside.”

If we look at the chart we can see that gold has been making multiple inverse head and shoulder formation for the last 5 years and the neckline lies at 1350-1380. It had attempted to break above this level for 8 times and failed. Today once again gold is trading above 1380 and if it sustains above 1400, the target for gold most likely will be 1800 and maybe 2400 in the next five years.

Similarly, silver is also looking poised for a breakout and may move up to 20 USD and above.