Gold can be an incredibly frustrating market to trade…

It’s known for laying low and being quiet…

And then out of nowhere, you’ll see a huge move. This is when traders get overeager and start making mistakes.

The big move took them by surprise. Not wanting to miss out on the gains, they start chasing the market.

(Much like Jeff’s Friday essay on FOMO…)

The only problem is the big move is already over. There’s no more juice left to squeeze.

So, they exit. They lick their wounds and then repeat the entire process all over again.

The trick is spotting those big moves before they actually happen. Unfortunately, sometimes that means positioning yourself a little bit early.

But if you want to catch those big moves, that’s simply the cost of doing business.

It’s impossible to consistently time the market. What’s far more important is recognizing when the market’s getting ready to run and being prepared for it.

And it just so happens that gold right now is gearing up for another big move…

Gold Could Go Either Way

I don’t know which way that move is going to go. It could be a big melt-up or a vicious sell-off.

But that’s okay. We don’t need to know which way gold is going to go in order to make a tidy profit.

At least not yet.

It’s all got to do with the chart pattern that gold is currently tracing out.

This particular pattern is a symmetrical triangle. It occurs when prices trade sideways in an increasingly narrowing range.

You use two trendlines to outline the contours of the pattern. These trendlines slope towards each other, eventually reaching a point.

You can check out the pattern in the chart below.


The triangle has been taking shape since December 1.

You can see how the two trendlines (blue lines) are containing all the price action.

Prices can’t trade within this narrowing range forever. As we get closer to where the two lines will meet, we should see an explosive breakout.

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Now to Wait Patiently

Prices can break either to the upside or the downside. All we have to do now is wait for the break to take place.

If prices break lower, a high probability target would be around $1940. That’s where gold previously bottomed out back on November 13. Gold then went on an 11% run.

If prices break higher, we should look for a move to a minimum of $2152. That’s the previous high that gold reached on December 4.

To sum up, gold’s price chart tells us that a big move is probably coming very soon.

And while we can’t be certain of the direction just yet, we know exactly what to look for when the breakout does take place.

Whether gold melts up or breaks down, we now have a plan in place to take advantage of that move.

Happy trading,


Imre Gams