The sell off in gold at the start of 2021 came as no surprise to us at the Time Factor.
We predicted this in the very first sentence of my Trading Notes as part of my 2021 Gold Road Map.
"The Road Map suggests a soft start to the year with weaker prices in gold."
But it's what happens next that has me interested.
Let me share with you three charts that build a possible bullish case for gold (at least in the near term).
Chart 1: The Square of 9
The chart below highlights one of two 'active angles' that I have set up for Gold Futures using the Gann Square of 9. You can see from the chart that since 2010, these active angles have proven to provide major price support and resistance, with many significant bottoms and tops in gold forming around these levels.
The price of $1786 is the current level of significance here, and the recent pull back in pricing has seen a re-test to these levels. Is this a sign that prices may be bottoming?
Chart 2: The Mars angles
Those of you who have been following me for the past several years will know this chart well. It is the Dynamic Gann Angles that I use specifically for the gold market.
As you can see, they have also proven time and time again, to be a useful indicator for predicting major support and resistance levels on the Gold price. Once again at $1786, we have seen a re-test of this angle. Is this another signal of price support?
Chart 3: Trading to Time
Gann always said that 'time is the strongest indicator of the all' - and I certainly agree with him 100%.
The final chart I wish to share with you is my own proprietary "Trading to Time" technique that I have successfully implemented over the years. It is an adaptation of using solar degrees and calendar days, and I have found it to be significantly more reliable than the other Gann methods out there that use solar degree counts.
You can see a few major turning points in gold over the last 12 months that have been produced using this Trading to Time technique. The recent price movement late last week just happened to coincide with one of these dates. Is this the confirmation signal we need for another turn in the gold price higher?
Now, none of this will be a surprise for those of you who have already downloaded my 2021 Gold Report. And I encourage you to re-visit the video where I discuss the Mars Angle and Trading to Time in more detail. This will give you the reasons as to why I think we should be watching for a low forming.
Until next time...