Cycle Trading

Tonight I want to take a closer look at a pattern that seems to repeat itself with gold.

Over the course of the gold bull there seems to be a pattern that has repeated itself.
I highlighted the three time frames that we will take a closer look at.

Beginning with 2001 – 2006

There are several things that stand out to me as I look at this time frame.
(a) A multi-month triangle consolidation.
(b) The peak following the break out of the triangle consolidation.
(c) A back-test of the break out area.

You will notice after gold makes it back to the resistance line at (b) there is a brief consolidation and then Bye-bye.

On to the 2004 – 2009 time frame.

Again you will notice:
(a) A multi-month triangle consolidation.
(b) The peak following the break out of the triangle consolidation.
(c) A back-test of the break out area.

And then once again, there a brief consolidation once gold makes it back to the resistance line at (b) then Bye-bye.

And finally our current set-up.

Again you will notice:
(a) A multi-month triangle consolidation.
(b) The peak following the break out of the triangle consolidation.
(c) A back-test of the break out area, which is where I believe we currently are.

Gold has “played that song” a couple of times now.
All I can say is play it again, Sam …