Gold Price: A Chart Pattern Quick Glance

Jun.19.12 | About: SPDR Gold (GLD)

I usually look at daily charts, but sometimes weekly and even monthly charts have very interesting stories to tell. Yesterday I hadn't looked at the weekly chart of gold for a long time, knowing that whatever it would be I had no plan to sell my metal in the following months (years?).

I have detected at least four bullish patterns on different timescales. One can wonder if it is not too much to be true. However I wanted to share this with you.

Here is the weekly chart with some annotations about the patterns.

Click to enlarge
(Click to enlarge)

Gold (ETF: GLD) is in a bullish graphical configuration on the short and long term. Please don't forget that precious metals are subjects to central banks' interventions and non-interventions. Anything can still happen on the short term. A move below the lower side of the triangle would invalidate all patterns, and give an opportunity to buy at a lower price. The longer gold stay above this support, the higher the probability that the next move will be upside and significant. A measured rule would say slightly above $2000 USD/oz, although this area should play a role as a psychological resistance.

Disclosure: I am long CEF, GTU.