Golden

10.06.2019

Looking at gold on the weekly timeframe consider two scenarios – (A) & (B)

(A)

We seen to have what could possibly turn out to be a Cup-And-Handle pattern on the Weekly time frame – if scenario turns out to be true we could be in for a target of 1500$.
I do however see a problem with the legitimacy of this pattern, since there is no increase in Volume on the second retest of resistance (uptrend of “cup”) – and the decline in volume can be seen to continue even as price rebounds of trend line support.
Volume also sharply increases on the “handle” where price declines – also a possibility of weakness.
A conformation of this pattern would be a weekly close above 1350$ with increasing volume

(B)

The Other possible outcome is yet another rejection of 1350$ which then could lead to a retest of 1280$ – and if that breaks in increasing volume a fallback to the support trend line at 1240$
This formation also has longer term implication in that we could then be looking at a massive ascending triangle on the weekly time frame.

Keep in mind the possible future US Fed rate changes and how that effects price – it at all?

On Thursday the 13^th of June we have the SA YoY Gold production figures coming out. See how price reacts as well as look info other gold fundamentals (eg: other gold producing countries and data available)

Also look at how the price and fundamentals have an impact on the SA gold mining stocks.