On the weekly chart, notice we're at the tail end of a head and shoulders pattern.
From The Smart Money Tracker:
Obviously $1000 is a big psychological number and most investors are concentrating on a breakout of that level as a sign the secular bull market is still intact. However $1000 isn't the important level. The important breakout has already occurred when gold took out the 1980 highs of $850.
W.D. Gann noted that the size of the consolidation often signals how large the ensuing rally will be once an asset breaks out of that consolidation.
The 28 year consolidation in gold is foretelling a bull market rally like no other that any of us have ever seen.
3 comments:
Adjust that second graph for dollar inflation and what happens then? Doesn't Gann's 28 year consolidation seem much more anemic?
I did not expected you will be fooled by the crowd.
I am very bullish on Gold, I expect $1200 gold very soon, but this is not a H&S.
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Patricia
http://forextradin-g.net
Post a Comment