Gold flat to down for years to come…I understand if you are thinking NO WAY or even a more colorful phrase!!! See below why the “Power of the Pattern” is suggesting this has a chance of happening.
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So far, what has happened 100% of the time the Franc has hit resistance line (1) since 1980? Gold has traded Flat to Down for years to come! Odd that the Franc is up against this 30-year line and Gold up against the top of its channel at the same time GLD became the largest ETF in the states? (see crowded Train/Eiffel tower pattern here)
Could it be different this time? It WILL BE DIFFERENT if Gold/Franc take out resistance! For sure plenty of Macro reasons around the world to make it differen’t this time around! The world will most likely look a TON different if resistance is taken out!
As always, resistance is resistance until broken. Gold and the Franc are both facing resistance and have created bearish rising wedges. If the support lines of the bearish rising wedges break at (3), the odds increase a good deal that Gold/Franc will be soft for a while.