by Chris Vermeulen
Sprott Money
Gold has set up a very strong confluence pattern across multiple foreign currencies recently. This upside confluence pattern suggests that Gold has now moved into a much stronger bullish price phase compared to various currency pairs. This upside move in precious metals aligns very well with my broad market cycle phase research. I urge traders/investors to start paying attention as we transition into this new longer-term cycle phase.
[…] Recently, my team and I published a series of articles related to these longer-term cycle phases and how they related to the current market trends. The biggest concept we want to highlight is that we’ve transitioned away from an Appreciation cycle phase and into the early stages of a Depreciation cycle phase. Often, near this type of transition, the global markets experience a unique type of Excess Phase Peak. This type of price pattern happens because traders/investors are slower to identify the end of a trend and often attempt to continue the Thrill/Euphoric phase of the previous market trend – until the markets prove them wrong.