What happened to the Previous all-time highs on GOLD 2008?
Today´s post is about taking previous situations and analyzing the similarities of them to current conditions. Why? because “History Doesn't Repeat Itself, but It Often Rhymes” – Mark Twain.
Please be open-minded to the idea that this is a Hypothesis, and of course, the price can take any direction from here. But we see similarities that we want to take into consideration in case something similar happens.
First of all, let's analyze the current scenario starting on the Weekly chart:
Here we can see the price making new all-time highs in relation to the previous one. After the first impulsive breakout, we can see a retest of the zone, and currently, we are in a consolidation phase.
The most relevant aspect here is that (Now go to the Daily chart) the yellow lines represent an ABC pattern (flag structure), which is considered a continuation structure. In this case, from a technical perspective, we should expect a bearish movement. If the price breaks below the structure
Another important item is that we can see a small consolidation on the edge of the yellow structure (purple lines). If the price reaches the beginning of the red arrow, we will take it as a confirmation of the situation. And we will expect a -10 Bearish movement from current levels.
Great, that's another analysis on GOLD. But the interesting thing is observing the 2008 All-time Highs. Let's start again with the Weekly chart:
After the price made a new All-time Highs compared to the previous one, the price corrected -34.8% before the new rally. Taking that as the model in which GOLD breaks previous levels and continues, we should assume that the consolidation phase is not finished yet. Let's see the Daily Chart:
Here we see similarities to the current scenario. Observe the yellow lines that create an ABC pattern (Flag Structure), Which is considered a continuation pattern. After the breakout of the structure, we saw a -15% correction. The whole corrective Phase on GOLD before the new rally took almost 1 Year.
The only objective of this is to provide you with a more broad view of GOLD if you trade this asset. Thanks for reading!
Please be open-minded to the idea that this is a Hypothesis, and of course, the price can take any direction from here. But we see similarities that we want to take into consideration in case something similar happens.
First of all, let's analyze the current scenario starting on the Weekly chart:
Here we can see the price making new all-time highs in relation to the previous one. After the first impulsive breakout, we can see a retest of the zone, and currently, we are in a consolidation phase.
The most relevant aspect here is that (Now go to the Daily chart) the yellow lines represent an ABC pattern (flag structure), which is considered a continuation structure. In this case, from a technical perspective, we should expect a bearish movement. If the price breaks below the structure
Another important item is that we can see a small consolidation on the edge of the yellow structure (purple lines). If the price reaches the beginning of the red arrow, we will take it as a confirmation of the situation. And we will expect a -10 Bearish movement from current levels.
Great, that's another analysis on GOLD. But the interesting thing is observing the 2008 All-time Highs. Let's start again with the Weekly chart:
After the price made a new All-time Highs compared to the previous one, the price corrected -34.8% before the new rally. Taking that as the model in which GOLD breaks previous levels and continues, we should assume that the consolidation phase is not finished yet. Let's see the Daily Chart:
Here we see similarities to the current scenario. Observe the yellow lines that create an ABC pattern (Flag Structure), Which is considered a continuation pattern. After the breakout of the structure, we saw a -15% correction. The whole corrective Phase on GOLD before the new rally took almost 1 Year.
The only objective of this is to provide you with a more broad view of GOLD if you trade this asset. Thanks for reading!
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