The following graph shows the performance of the Gold Market this year.
The graphic shows a number of things from which we can conclude:
1. The first rally took gold from 1046 to 1263.
2. This was followed by a rally to 1284 then a rally to 1303.
3. The retracement of the increase was smaller than the Fibonacci number - the retracement was only 6%.
4. People are coming back to the Gold Market and buying any dip.
5. Demand for gold remains strong.
6. The next rally should take gold above 1,300, precipitating a short squeeze. Will we then go to 1,900 in one rally? Probably not.
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