Before we get down to the update, I would like to answer the comment of our esteemed readers posted last week in more detail about the Cup & Handle pattern on the big gold chart. I think it will be interesting for all to see the visualization of my answer. Besides that, I prepared a bonus chart for you with an established pattern and a trade setup.
Let us start with that big gold chart first.
The reader kindly provided exact coordinates, so I just built the pattern. As we can see in the chart above, it is safe to say that the shape of a Cup could have been completed already (blue). However, as I answered to that comment, we are missing the Handle part of the pattern yet. I put the possible shape of it in red on the chart. The price should make a zigzag inside of the Handle first; it could take several years as Cup has been shaped within long 9 years. Only then, the price could continue to the upside. The target will be located beyond $3000. To sum up, the pattern itself is possible, but it is not fully shaped yet, and we should wait to see how the market will play. Continue reading "The King Requires Respect"