Take a look at this weekly chart of gold\u2026<\/p>\n
![](\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/sites\/19\/2018\/01\/Screen-Shot-2018-01-16-at-10.39.49.png\")
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Weekly charts are helpful in analyzing the longer-term outlook. Day-to-day fluctuations don\u2019t matter \u2013 it\u2019s the closing price at the end of each week that gets plotted on a weekly chart. And traders can use weekly charts to project patterns that may play out several months \u2013 or even a few years \u2013 down the line.<\/p>\n
This weekly chart of the price of gold has been tracing out an ascending triangle pattern for the past fifteen months. This is a bullish pattern. It\u2019s formed as a chart makes a series of higher lows, yet still finds resistance at the same level.<\/p>\n
If the chart can break above resistance, it often leads to a powerful move higher.<\/p>\n
Gold has immediate resistance at the $1,350 level. The current rally is only the second test of that resistance level.<\/p>\n
It will be tough for gold to break above that level on just the second attempt. But who knows? The dollar looks like it\u2019s breaking down. And if the selloff in the buck accelerates, then perhaps gold can break out and run towards the $1,400 level on this current rally. That would match gold\u2019s highest price in four years.<\/p>\n
And that\u2019s where it gets interesting.<\/p>\n
You see, when a chart breaks out from an ascending triangle pattern, the price target is calculated by adding the height of the triangle to the resistance line.<\/p>\n
In the case of gold, the bottom of the triangle is $1,150. The top is $1,350 \u2013 a $200 difference. So, a breakout from this pattern projects a $200 rally.<\/p>\n
That gives us a price target of $1,550 \u2013 which just about matches the highest resistance line I\u2019ve drawn on the chart.<\/p>\n
I\u2019m going to go out on a limb and say gold will hit $1,550 per ounce sometime in 2018. It won\u2019t be a straight shot higher, of course. Gold has multiple resistance levels overhead. It will likely chop back and forth as it challenges each level.<\/p>\n
Ultimately, though, this weekly chart of gold is quite bullish. We\u2019ll likely see some solid gains in the metal this year.<\/p>\n
Best regards and good trading,<\/p>\n
![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/div>\nJeff Clark<\/p>\n
Reader Mailbag<\/strong><\/h2>\nIn today\u2019s mailbag\u2026 a correction.<\/em><\/p>\n3.5 million is NOT 10% of the US population. It’s only 1% of our 300+ million population.<\/p>\n
\u2013 Thomas G.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n
You might tell Jeff Brown that the 3.5 million “ghost” accounts that Wells Fargo opened is 1% of the US population, not 10% as he stated.<\/p>\n
\u2013 Jeffry W.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n
I\u2019m no math wizard, but I can tell you that 3.5 million is only 1% of the approximate population of the U.S. (350 million).<\/p>\n
\u2013 Jim D.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n
Thanks to the many keen readers who wrote in to right our mistake. The original essay, \u201cWhy Big Banks Are Terrified of This Technology<\/a>\u201d has been corrected and noted for the record.<\/em><\/p>\n
3.5 million is NOT 10% of the US population. It’s only 1% of our 300+ million population.<\/p>\n
\u2013 Thomas G.<\/strong><\/p>\n<\/blockquote>\n
<\/p>\n
You might tell Jeff Brown that the 3.5 million “ghost” accounts that Wells Fargo opened is 1% of the US population, not 10% as he stated.<\/p>\n
\u2013 Jeffry W.<\/strong><\/p>\n<\/blockquote>\n
<\/p>\n
I\u2019m no math wizard, but I can tell you that 3.5 million is only 1% of the approximate population of the U.S. (350 million).<\/p>\n
\u2013 Jim D.<\/strong><\/p>\n<\/blockquote>\n
<\/p>\n
Thanks to the many keen readers who wrote in to right our mistake. The original essay, \u201cWhy Big Banks Are Terrified of This Technology<\/a>\u201d has been corrected and noted for the record.<\/em><\/p>\n