Spot Gold: Potential upside

We currently find a bullish reversal pattern known as an ABC reversal on the price of spot gold.

This technical pattern is similar to that of the inverse Head and Shoulders in that it marks the first point after a downtrend where we see a series of higher lows and higher highs.

The ABC pattern omits the left shoulder of a Head and Shoulders pattern.

A target is derived by measuring the height from Point A to Point B and projecting a proportionate distance from the breakout area, which in this scenario predicts a move to $1500/oz.

Failure of the pattern would be considered should the price start trading below the point market by C on the chart.


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