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Back on December 21st Toby Connor suggested that Gold probably had one more curveball to throw us before the final yearly cycle
bottom which would see it set a new low at around $1630 a couple of weeks thereafter. Given the events of today Connor was right on the money, Below is a recap of that December article with rationale for his forecast. Words: 350
Below are edited excerpts from Toby Connor’s (www.goldscents.com) original article* entitled STOCK MARKET BREATHER & GOLD YEARLY CYCLE LOW.
This article is presented compliments of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement
Connor’s article goes on to say, in part:
The gold market has been rather confusing of late…[but,] with the benefit of hindsight, it’s apparent that the yearly cycle low that I was expecting sometime in April or May has been moved up to correspond with last year’s D-Wave bottom [and, as such,] there is a possibility that that yearly cycle low bottomed yesterday [December 20th]. It appears to me, however, that we had a daily cycle low 10 days ago [December 11th] and, if that’s the case then, after a short-term bounce, gold may make one more move to marginal new lows….
The normal duration for a gold daily cycle is about 18-25 days. Unless this turns out to be an extremely stretched daily cycle then gold probably has one more curveball to throw us before a final yearly cycle bottom. On the plus side the rally out of a yearly cycle low tends to be the most powerful rally of the year. In this case if we were to get one more marginal new low to say around $1630 in the next couple of weeks that should be the end of the selling and I think gold will easily test the $1900 level during its next intermediate cycle. [DCL in the chart below stands for Daily Cycle Low.]
Conclusion
For those of you still holding positions in the precious metals market I would strongly advise you to not lose your position in the next couple of weeks if gold does make another marginal new low.
If you are back in cash I would advise waiting to see how gold reacts as the stock market launches out of this short-term correction.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.goldscents.blogspot.ca/2012/12/stock-market-breather-gold-yearly-cycle.html
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