Megaphone (Broadening Top) pattern chart update 7 - testing the lower trend line, I anticipate breakdown soon. #Gold pic.twitter.com/lUWkxCJQa5
— Petko Bankoff (@5koFX) July 5, 2015
#Gold Megaphone (Broadening Top) chart pattern update 8 - test and bounce of support trend line but no follow-through pic.twitter.com/AozznBxE2h
— Petko Bankoff (@5koFX) July 12, 2015
Megaphone (Broadening Top) update 9: price has broken down support. Downside targets - 1108, 1078. #Gold #GLD #GC_F pic.twitter.com/znluhk8Dh4
— Petko Bankoff (@5koFX) July 18, 2015
Megaphone (Broadening Top) technical chart pattern update 10: downside price targets of 1108 and 1078 were reached successfully (click on chart below). Notice that right after gold hit 1078, it bounced and rallied 24pts. which means that there is, or at least there was, to be more precisely, a huge buy imbalance at this level.
Calculation of the profit target for this pattern is the same as it is for any Triangle chart pattern - take the lowest (1154) and the highest (1232) trend lines points that price has touched, measure the difference, which in this case is 1232-1154=78 pts., and subtract it from the breakdown point 1154-78=1076, add 2pts. to compensate for spread or error and voila!
Conclusion: bears did triumph in the end. This MegaPhone (Broadening Top) chart pattern is now fully played itself and irrelevant. No active positions and orders until another pattern reveals itself. 1150's is now resistance, look for new bearish patterns to occur above 1100 to provide good R/R shorting opportunity.
I wish you all a great summer vacation! Stay safe and be cool.
P.B.
