Gold On The Verge Of A Massive Move

20 May
Gold Eagle:

“Gold hasn’t had much success moving higher yesterday. Its breakout above the neckline of the previously completed head-and-shoulders pattern is close to being invalidated. Will that invalidation happen prior to or shortly after the Friday’s options expiry? In assessing the short-term outlook, we look at many factors, including the gold miners-to-gold ratio dynamics. Will they lead both metals on their upcoming move? In addition to explaining the above, in today’s analysis, we’ll feature our near-term downside targets for silver and mining stocks.

But first, a few words of introduction.

On Monday, gold soared on the possible escalation of trade wars. We have more than 2 weeks before the announced tariffs would come into effect, but since the markets are forward looking, they already discounted this in price. The general stock market fell, while gold and gold miners rallied sharply. Gold even managed to rally back above the neck level of the previously completed head-and-shoulders pattern. Moreover, gold moved above the declining resistance line based on the 2019 tops at the same time. The volume on which it all happened was huge – the biggest daily volume on which gold rallied so far this year. How bullish has the situation really become for the short run?”

Read the full article here