While the world economy stumbles, especially Europe, gold prices are again making a move. Will this be the one that breaks the grip of the FED and its minions on gold price? Only time will tell. But, a look at where we have been may be useful at this point. Here are the daily prices:
There are a number of interesting features in this graph. From the middle of March to the middle of May we see a flag formation (lower highs and slightly rising lows), followed by a week of sideways action then a sharp breakdown to 1240. Gold then began to rise and we saw a significant rise on June 20 that took gold to 1340. This was a very significant rise, not just because of its size, but because it ushered in a couple of weeks rise in gold prices producing the Golden Cross (the 50 DMA going above the 200 DMA). Around July 12, there was another attempt to drop the gold price, but the drop only went to 1300. Then began a reverse head and shoulder formation, of which we are now seeing the right shoulder's development. At this point we do not know if the intraday drop on Friday marked the low of the right shoulder or if a few more days of small drops is yet to come.
This reverse head and shoulder implies a coming move to 1400/oz.
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