Gold ...daily

click to enlarge


Leaving Elliott wave out of the mix Gold has 2 scallops (be careful chasing this). According to Bulkowski's Encyclopedia of chart patterns' the resistance break out is the top green dotted line. The second green dotted lines are the Triangle Break line. Amazing how they fit together with the Ichimoku Cloud. The DMI has not crossed 24 yet (ie Williams). The RSI is at 50ish which is good.Sometimes I use 20 on the ADX if it looks good.
Some previous study has shown that scallops come in three's or if there is 2 scallops a Drop to form a "V" occurs which is considered a scallop. The conversion line has not crossed over the Base line yet.(not shown) Is the Bottom in?  I'm really conflicted on that question at the moment. I'm still holding out to add to positions unless Price Breaks the top dotted line ,but even then there should be a pullback at some point.