In this post I'll look at the recent action in Gold, then zoom out to look at two monthly charts, as the big picture juncture is quite exciting.
The daily chart shows that Gold has now beaten two important down trend resistance lines.
Zooming out now to the log scale monthly chart, suggests that Gold may have been forming a bullish flag from the 2011 high. The recent rally began at trend line support, and implies that a move to new record highs could be underway. Yes, there is resistance overhead, but the potential is clear and risk levels are relatively nearby.
Next let's switch the monthly chart to arithmetic scale, and redraw the trend line to fit. Gold is showing a brief false break under trend line support. The rally back above the trend line opens the way for the up trend to resume, toward new record highs. There's no guarantee of such a move, of course nothing can predict the future, but the potential is clear and so is the risk management level. Let's see.