In early 2024, gold reached the price objective derived from the breakout of the large triangle that had evolved beginning in early 2022. Upon reaching the area of the objective, a classic buying climax halted the trend. The subsequent trading range has been characterized by distribution. In the event of a breakout lower, the amount of distribution (cause) derived from the Point and Figure (P&F) count suggests a downside objective of 10–12% lower is reasonable. But will it reach this price objective? In this article, we’ll make a technical assessment of the daily and weekly charts, provide evidence suggesting that the range is likely distribution (Wyckoff), and show how to assess potential price objectives using point and figure charts. Weekly Chart of Gold CHART 1. WEEKLY CHART OF CONTINUOUS GOLD CONTRACTS. In November 2023, gold broke above lateral resistance developed along the $2079–$2085-per-ounce area. The lateral resistance and rising support…
