the first time I thought it could form a it was on March 26, 2019 when I published the idea on TradingView. For easy reference please click the image below:
Since then I've been trying to undestand gold behavior until it broke out the handle for the upside which confirmed the overall bias as a continuation pattern.
Factors that helped Gold to breakout the handle for the upside are:
1) US China stalemate beginning of May,
2) Theresa May stepping down with increase uncertainties over Brexit;
3) Raising tensions in ME;
4) FED posture;
All these ingredients increased appetite for safe havens and Gold reacted in accordance with fundamentals and technicals.
The main reason why I neglected Gold these days is because I could not find a target after the breakout. I knew it was running high but when it slowed down at 1360 I thought it was topping. Instead it went to 1440 following the FED on Jun 19.
The day after the FED markets expected a rate cut in July. But the following week FED members inlcuding Bullard didn't sound dovish at all. This "U-Turn" made gold hit 1440 and retreat IMHO.
Technically the move is completed IMHO as 1440 was the perfect Take Profit following the breakout of the handle.
Infact, according to Investopedia: "A profit target is determined by measuring the distance between the bottom of the cup and the pattern’s breakout level, and extending that distance upward from the breakout."
For full detail about Cup&Handle please refer to the full article:
1300 - 1160 = 140
1300 + 140 = 1440
Now we have to wait for the G20.
Thank you for your support and for sharing your ideas.
Don't forget to put a like if you appreciate the post and to follow me if you want to receive notifications on new and updated ideas.
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.