Gold Getting Ready For Blast-Off
All markets go through the samephases from consolidation to blow off; the metals are no different. For months,gold languished in the consolidation pattern churning between $1,180-$1,220. Threeweeks ago today, it broke out right to blow off.
Since its blow off, gold settledand resolved the blow-off pattern by consolidating once again but at muchhigher levels. The phase that gold missed was the trending to breakout phase, whichit's in right now. As gold starts to trend higher, it is forming an ascendingtriangle near the $1,240 level.
Gold should break out here in thenext few days and start trending higher to our next target of $1,275. Thereappears to be a lot of underlying strength now as gold has switched from weakto strong. Gold is in an ideal position to continue to the run to the upsideand the lows appear to be in.
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Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |