Gold had an incredible run up to 315 (on GLD), which ended in the middle of April. It has been consolidating ever since. From a pure technical perspective, gold has been working off the overbought conditions. That is a definition of a healthy bull market. The chart below illustrates a nearly perfect example of a bullish triangle pattern. Keep in mind that technical patterns are just probabilities based on our ability to observe repetitive behavior of masses.
This pattern, however, is classic. Let’s see if it works this time, meaning gold will break out to the upside after this pattern is over after a few days/weeks.
I’m buying December Gold calls.
Dennis Leontyev
