Gold is setting up for a major rally years in the making, charts suggest

Gold is coming under pressure Thursday morning.

But, the charts are setting up for a bullish move that could take the yellow metal sharply higher, said Miller Tabak equity strategist Matt Maley Wednesday on CNBC’s “Trading Nation. ”

“Look at the chart on gold, it’s broken above its trend line going all the way back to those 2011 highs. That’s very positive,” he said.

It now needs to break a key resistance level in order for it to take off, according to Maley.

“We’re really going to need for it to break above the key level which is a range of $1,360 to $1,380. If we get above that $1,380 level, that was the top in 2014, 2016, 2017 and 2018,” he said. “Whenever you get multiple touches over several different years, if you can finally break above that level, it really takes off. In other words, it confirms that the long-term trend has changed,”

Gold would need to rally 6 percent to get back to $1,380. It last traded above those levels in mid-2013. On Thursday, the yellow metal was down more than 1 percent, hovering around $1,300.

“We do need that final push above the $1,380 level before we can really pound the table and say the bear market in gold is over,” he said.

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