Gold forming similar topping pattern
Many have observed that gold (using GLD here as a reliable proxy) might be forming a huge cup-and-handle pattern (1,2). That may prove to be the case. However, at the moment, the similarity of the unfolding trend to the 2011-13 topping pattern seems noteworthy in itself. Perhaps we’re seeing the start of the cup-and-handle leading to an upward bull run, or perhaps it will be a rerun of the 2011-13 pattern with gold going into a sustained decline. Imo, persuasive arguments can be made for either outcome, so I’ll just wait and see and in the meantime point out this arguably curious unfolding similarity.
(1)
(2) investopedia.com/terms/c/cupandhandle.asp
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(2) investopedia.com/terms/c/cupandhandle.asp
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