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Could Gold Be Forming Bullish Cup and Handle Pattern?

  • Written by Syndicated Publisher 1 Comment1 Comment Comments
    February 20, 2014

    Gold is off to a nice start in 2014, after losing a third of its value over the past 16 months. The rally of late could well be forming a bullish cup & handle pattern.

    If this pattern read is correct, the handle needs to be completed. A decline in Gold would have to take place to complete the handle. As of this morning gold finds itself at a resistance and is making a short-term bearish wick.

     

    The rally has been nice so far in 2014, but from a big picture perspective Gold hasn’t proven a ton as of yet. It remains inside of its falling channel and is making it first attempt since 2013 to post a weekly close above its 200EMA line at (2).

    If the cup & handle read is correct, it’s bullish for gold. Stay tuned to see if the handle forms and if Gold can break above its 200EMA and out of its falling channel.


    For information about Kimble Charting Solutions, send an email to services@kimblechartingsolutions.com.

    Images: Flickr (licence attribution)

    About The Author

    My original dshort.com website was launched in February 2005 using a domain name based on my real name, Doug Short. I’m a formerly retired first wave boomer with a Ph.D. in English from Duke. Now my website has been acquired byAdvisor Perspectives, where I have been appointed the Vice President of Research.

    My first career was a faculty position at North Carolina State University, where I achieved the rank of Full Professor in 1983. During the early ’80s I got hooked on academic uses of microcomputers for research and instruction. In 1983, I co-directed the Sixth International Conference on Computers and the Humanities. An IBM executive who attended the conference made me a job offer I couldn’t refuse.

    Thus began my new career as a Higher Education Consultant for IBM — an ambassador for Information Technology to major universities around the country. After 12 years with Big Blue, I grew tired of the constant travel and left for a series of IT management positions in the Research Triangle area of North Carolina. I concluded my IT career managing the group responsible for email and research databases at GlaxoSmithKline until my retirement in 2006.

    Contrary to what many visitors assume based on my last name, I’m not a bearish short seller. It’s true that some of my content has been a bit pessimistic in recent years. But I believe this is a result of economic realities and not a personal bias. For the record, my efforts to educate others about bear markets date from November 2007, as this Motley Fool article attests.

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