I have been looking at charts since I was a junior in university - about 47 years ago. Thousands of charts and thousands of hours. Malcolm Gladwell, the author of Outliers, would be proud of me, I think. One of the chart patterns I learned about was a "saucer bottom" and I discussed this base pattern in my class at Baruch College on Tuesday night.
Here is a teaching moment and a juncture in time where I present a pattern before (hopefully) it makes an important breakout. If you believe in fundamental analysis please keep an open mind and don't roll your eyes.
In this weekly bar chart of nearby gold futures I have used the software on Bloomberg to outline the pattern. This chart was created by linking together a series of active or nearby futures contracts. Rolling one contact into another and then another. Can you see the saucer shaped pattern playing out from 2013? I have also added a downward sloping "neckline" on the chart.
Another analyst could have easily drawn the neckline differently but I would judge the intersection around $1,375 or so. Prices have been going up for a few months and what may be more impressive is that I am seeing increased volume coming into a number of gold mining companies.
Gold prices may not be ready to break out over my neckline around $1,375. Prices could fail and retreat but I think you should consider that gold prices and mining companies could be considerably higher later in 2019 and 2020.
Keep an open mind.