|Updated September 23, 2009 - Price will go up when
time has come...and time has come for Gold!
July 31: the objective of the
Triangle is $ 1225
September 23: Gold needs to break $ 1,033 for higher. We have no
doubt this will happen. So far, we don't know exactly when. What we know
is that it won't take months....and when it happens it probably will be
Updated June 9, 2009
- Technically, the mixed signals are
neutralized. The smaller head and shoulder pattern
with a neckline around the $ 890 has become invalid (nice try Gold Pool
II) . Hence the ABC correction is validated [ an ABC correction is
typical for a BULL market] by the 'double bottom'. As Gold is breaking
out, it is also validating the HUGE UP FLAG which is often a halfway
rest between two legs. At this point we can even forecast that $ 1,260
will probably be the next rest zone.
- Because of the down slope of the Up
Flag, it becomes harder and harder to contain a break out of the Flag.
Again - bad luck for the Gold Pool II.
- Once the $ 920 is cleared, expect $
960. Once the $ 960 is cleared resistance should normally fall.
- Positive however is that the
Stochastics have re-entered a BUY zone and we have an important
accumulation Gold and Silver options for the next months. Mid May is an
Option roll-over date. Hence, resistance on Gold will probably fall
later this month. Worst case scenario, we expect to see $ 1,000
brushed again. See a summer correction followed by a break out through
the $ 1,000 later this year.
What many saw as a Head and Shoulder
formation, is nothing more than a UP FLAG.
Weekly and daily Stochastic have moved into a Buy
The objective of the large reversed HS formation is $
1,300 . As soon as $-Gold moves through the $ 925 level, it will break out of a
triangle and also out of the flag. Because all technical indicators have eased back to a Buy level, this
move can take $-Gold through the $ 1,000 level. If it does, shorters will have
to run to cover positions and will so add to the upwards dynamic.
Sentiment is dull to negative.
There is a flat CONTANGO for Gold and for Silver
indicating that there is s shortage of physical metal for delivery. [ This is
where the physical market meets the paper market! The physical market ALWAYS
- Spring time is historically a time of price
relaxation for Gold. It is followed by a first
blossoming towards June/July to fall back into Summer Siesta in order to
be strong for the Holidays (XMas and New Year).
> back to Gold fundamentals
Goldonomic, Florida, USA -