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Where Gold Is Going Now


Gold rallied from 1613 to the mid-1900’s from early November to early February.

That’s a textbook 90 degrees in time.

Long-time readers are familiar with Hit and Run’s use of the geometry of Time and Price in keeping with the methods of legendary trader, W.D Gann.

Gold’s 90 degree/day rally is a text book example

Moreover, if we look at the price action in GLD, it telegraphed both the low and the high.

GLD left a Combo buy signal at the November low—a Gilligan and a Soup Nazi buy patterns.

At the high, GLD left a large-range Soup Nazi sell signal and Train Tracks.

A Gilligan buy signal (from my books Hit and Run Trading)  is a gap down to a new  60 day low with a close at/near session highs.

A Soup Nazi buy is a new 20 day low that reverses back through the low of at least 4 days prior within the 20 day lookback.

As below, so above. A mirror image fold-back.

Gold/GLD had a momentous move in that 90 day stretch. GLD moved from 150 to 182.

Subsequently, we’ve had a decline.

However, given the nature of the slope of the prior rally, the presumption is this decline is a corrective versus impulsive decline…ie, a bullish pullback.

Slope refers to sharp price movement over a short time period…ie, momentum.

GLD turned its 3 Week Chart down last week and bounced and is currently testing last week’s lows.

If indeed, this decline is bullish it should strike a low soon in terms of time and price.

One factor underpinning that assumption is that November 3rd, the low, vibrates off 169 —where GLD is currently trading.

Consequently we may have a Time/Price square-out on the table.

What that means simply is that Time points to Price and Price points to Time.

“There is a definite relation between price and time.”
-W.D. Gann

Checking an hourly GLD shows 3 drives to a possible low and a double bottom.

Breakage above 170.50 triggers an Angular Hourly Rule of 4 Breakout opening the door to a test of the declining 50 hour moving average.

If the 20 hour (red) crosses back above the 50 hour (blue) it opens the door to a push to Phil D. Gap.

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