Send this article to a friend:

September
15
2022

New Gold Apex Pattern How Will the US Fed Funds Rate Decision Affect This?
Chris Vermeulen

My research shows a new Gold Apex pattern is set up for September 11~15. Around September 11 or after, Gold will attempt to reach this new Apex level near $1766. This price pattern is important because the US Fed rate decision date is September 20~21, and a host of economic data reporting comes out the week before the Fed decision.

My educated guess is Gold & Silver will begin a volatile breakout move, possibly rolling lower to retest support near $1672, before attempting to move higher as global fear starts to elevate. I believe the current lower support level is critical to understanding the opportunities in Gold. If the $1672 level is breached to the downside, it means that Gold has lost a critical support level and will likely trend lower.

Given the statement by Powell last Friday, it seems the US Fed will not pivot and will do what is necessary to tame inflationary trends. Recently I posted two articles about Gold and the Fed that you should review as we move toward the September 11~15 dates.

WEEKLY GOLD CHART

I suspect the $1766, the current Apex level, will play a critical role as new support/resistance going forward. The strength of the US Dollar should have weakened Gold more aggressively, but Gold is holding up quite well in the face of an ever-stronger US Dollar.

Some major event may occur near September 11~15 – just before the Fed rate decision on September 20~21.

DAILY GOLD CHART

Price Apex patterns, like this one in Gold, usually resolve with an aggressive volatility event before establishing any new trends. I often term these events a “washout rotation.”

For example, look at the Apex of the previous (YELLOW) Flag/Pennant formation. A price neared the Apex, but it stayed low compared to the lower yellow boundary. Then, a price reached the true Apex, and a broad 6.5% price rotation took place, eventually settling near $1780.

What happened next was price settled into a rally phase originating near $1780 and continuing up to $2077 – a +17.75% rally.

CONCLUDING THOUGHTS

I can’t predict the future any better than you can. But I do understand Flag/Pennant formations. I believe the current Pennant formation in Gold will resolve to the upside – possibly launching Gold into another significant rally phase.

I continue to warn my followers that Gold and Silver must initiate a new upward price trend to break free of the current downward price trend. Yes, we saw a strong rally attempt in early 2022, but that topped out and slid down over the past 4+ months. Now, as we resolve the current Price Apex, we’ll need to see a substantial price rally above $1828 to confirm any potential for a new bullish rally phase in Gold.

HOW CAN WE HELP YOU LEARN TO INVEST CONSERVATIVELY?

At TheTechnicalTraders.com, my team and I can do these things:

    • Safely navigate the commodity and crude oil trend.
    • Reduce your FOMO and manage your emotions.
    • Have proven trading strategies for bull and bear markets.
    • Provide quality trades for investing conservatively.
    • Tell you when to take profits and exit trades.
    • Save your time with our research.
    • Proved above-average returns/growth over the long run.
    • Have consistent growth with low volatility/risks.
    • Make trading and investing safer, more profitable, and more educational.

Sign up for my free trading newsletter, so you don’t miss the next opportunity!

We invite you to join our group of active traders who invest conservatively together. They learn and profit from our three ETF Technical Trading Strategies. We can help you protect and grow your wealth in any type of market condition. Click on the following link to learn how: www.TheTechnicalTraders.com.

Chris Vermeulen
Founder & Chief Market Strategist

 

 


Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He has also been on the cover of AmalgaTrader Magazine, and featured in Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites.

 

www.thetechnicaltraders.com

[Most Recent Quotes from www.kitco.com]
 [Most Recent USD from www.kitco.com] [Most Recent Quotes from www.kitco.com]

Send this article to a friend: