A subscriber asks about the multi-year Cup & Handle in gold and what might be projected from it. I’ll assume he means the smaller, more recent Cup, but for fun (and confusion) I’ve included the larger one as well.
The 2011-2019 Cup would logically make a Handle here if this correction continues to some of its lower targets. A small theoretical Handle is drawn in to the major support area. The measurement of this little feller would be to a new high at around 2200/oz. Not bad.
As for the monster Cup from 1980 to 2011 we’d be looking at something on the order of 2600 to gulp, 3300 based on how it is measured. Okay, so who says I can’t hype you up with the best of ’em?
Also note that the little guy may not be complete as its right side is much lower than the left. So the current correction could be a quick one prior to a test of the 2011 high. At that point, maybe around 2000 or so it could begin a Handle. Then its projection would be to 2900 or so.
Bottom line? It’s just some fun with charts. But gold is bullish and there appears to be some serious upside potential in the coming years.
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