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What is the Setup In Gold?

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In early June 2020, gold commenced a rally to new all-time highs in early August.

The advance ended in 43 trading days.

From the early March 2021 low, gold rallied 43 trading days into Tuesday’s peak when it showed a signal reversal bar.

Wednesday was a Pause Day.

Thursday gold gapped down, testing its rising 20 day ma for the first time since May 4.

Early this week we penned an article for members noting that gold had turned its 3 Month Chart up and that it would not be surprising to get a knee jerk reaction when this big wheel of time turns up.

The above daily gold shows it is backtesting the top of the green trend channel.

I created the green trend channel by connecting the August high and the January peak.

The early January peak remains the high for the year.

A parallel trend line off the early March 2021 low shows the impulse last July from a June low (not shown).

Essentially we are one year from the start of a parabolic move that installed an all-time high in gold.

The red trend channel was created by connecting the most important lows since the August 2020 top.

I then paralleled a trendline off the August 2020 top.

This shows the false breakout in January… contrasted with the true breakout with follow through this spring.

Gold is pulling back to backtest the green trend channel in tandem with a rising trendline (blue) off the March double bottom.

This is a potentially more bullish time/price pattern than if gold had spiked up to test the January high here in early June.

The prospect is that another low is on the table on the one year cycle, opening the door to another important pivot in early July, 180 days/degrees from the early January peak.

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