Market patterns repeat themselves over-and-over in the same way history tends to repeat itself . Why so ? Markets are influenced by investor supply and demand for an asset, by investors fear and greed and so by human behaviour. Does human behaviour not repeat itself too over-and-over? QED
I show you here below an interesting pattern developping in Gold price that mirrors action early 2016 (see the 2 red ellipses) : 1/ Bottom followed by a crossing of the descending 50 days MA 2/ Reaction down to retest the stabilizing 50 days MA 3/ Another move up (recently to USd 1246) followed by a short move down (Recently below 1220) 4/ Move up again : in January last year this move after crossing the 1130+/- previous interim high triggered a 15% gain in a very short period to 1264 and even more thereafter . For now let ‘s keep a close watch to USD 1246 previous interim high and see if same kind of price action would follow should this level be overtaken … I suspect YES.