- March 29, 2023
- Posted by: Tradingshot Articles
- Category: Commodities
Gold (XAUUSD) has been on a 6 month rally since the September 28 2022 market Low. This chart on the 1M time-frame shows that Gold is trading on approximately 7 year Cycles since the April 2001 market bottom and that based on this model, the September low may be the bottom of the previous Cycle and start of the new one.
Since August 2011 there is a Higher Highs trend-line that rejected any bullish break-out attempts and bullish continuation both on the August 2020 and March 2022 Highs. At the same time the 1M RSI has been on Higher Lows since July 2013 and the recent September Low made a perfect touch on the trend-line.
It is likely that a break and closing of a monthly candle above the August 2011 Higher Highs trend-line would start a Channel Up that could share some characteristics with that of 2001 – 2011. What do you think? Are we that close to such a historic Bull Cycle?