Throughout much of last year, analysts were discussing the giant, multi year cup and handle formation that was evident in Gold.
2021 though, was a difficult year for Gold bugs because the entire year was the consolidation portion of the pattern, the handle. Now, after the strong run we’ve seen in the precious metal since the beginning of the year, it looks as though price is breaking above the ultimate resistance of the lip of the cup. From a GoNoGo perspective, we like to see the set up develop over the right side of the pattern and this is indeed the case with Gold. Half way through the formation of the cup, GoNoGo Oscillator broke above the zero line and GoNoGo Trend followed by being unable to consistently paint “NoGo” colors. As a “Go” trend took hold in early 2019, GoNoGo Oscillator has since been finding support at the zero line. This last thrust higher above the highs of the pattern coincide with the oscillator breaking out of a max GoNoGo Squeeze on heavy volume. This could be the start of a multi year rally.
