Tuesday , 20 February 2024

Gold to Repeat? (+2K Views)

I believe that sooner or later Dr. Bernanke and the Feds will have to resort to another round of quantitative easing which will cause investors to run back to the safe haven of precious metals but, until that happens, I conclude that gold will continue to weaken… [Here’s why.] Words: 461

So says George Maniere (http://investingadvicebygeorge.blogspot.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com (It’s all about Money!), has further edited ([  ]), abridged (…) and reformatted below  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.  Maniere goes on to say:

The chart below shows that the latest gold price action is strikingly similar to the pattern that unfolded at precisely this time last year….[and] if this pattern holds true again it will provide traders with a good roadmap and price targets for trading gold in July…

The chart clearly shows a broad picture of a repeating pattern of price swings. Notice how in April of 2010 we had a move up (1) followed by a small correction (2). We then  had a substantial move to the upside (3) followed by a correction of about one half of the previous move up (4). This was followed by another nice move up (5) followed by a substantial correction back to the level of the first correction (6).

A look at the chart below of the exact same time period in 2011 shows that an eerily familiar pattern has developed. The only X factor will be the final leg downward. If this final leg corrects back to the 150 day moving average, as it did in 2010, we will have a good indication of what to expect from GLD.


Look at the chart above. The signs are all there. If leg 6 pulls back to the 150 day moving average the RSI, the MACD and the slow stochastics will all be exactly where they were in 2010. Trust your charts! [The time is fast approaching to get back into the PM market and ride the bull market in precious metals once again.]


Related Articles:

  1. Gold’s Recent Price Action Suggests Ultimate Top of $5,000/ozt.  https://munknee.com/2011/06/golds-recent-price-action-suggests-ultimate-top-of-5000ozt/
  2. Why Silver Could Drop Below $30/ozt.  https://munknee.com/2011/06/why-silver-could-drop-below-30ozt/
  3. It’s Not Time to Buy the Gold Miners – Yet  https://munknee.com/2011/06/its-not-time-to-buy-the-gold-miners-yet/

Editor’s Note:

  • The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
  • Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.