Chart of the Day - Tuesday, June 16th, 2020

Today's Chart of the Day was shared in a research note from Frank Cappelleri of Instinet (@FrankCappelleri). It's a daily bar chart of Gold futures over the past eight months. In the note, Frank explains that Gold has been consolidating above its Feb/March highs of $1,700 per ounce for about two months now. He calls this price action "constructive," and points out that an inverse head and shoulders pattern remains in play. The measured move from this bullish pattern would bring Gold to test it's 2011 all-time highs, around $1,900 an ounce. On top of all this, price is above both the 50 and 200-day moving averages, indicating the trend is higher. Keep an eye on this consolidation over the next few days/weeks. There's plenty of evidence to suggest Gold will resolve higher. If it fails to do so and resolves lower, that would be useful information as well, signaling a change in trend is potentially underway.