Watch for larger, stronger rallies later this year and into 2010.
The first leg of our fall gold and silver rallies appears to be over. Next, we should be selling and correcting on standard profit-taking. Our first signals are the current, choppy ABC wave top followed by (1) A continuation sideways triangle or, (2) A new trend either up or down for prices. (3) Then a new rally.
We have noticed in technical signals on faster charts the past few days that gold has not wanted to sell despite it’s time to do so on the cycle calendar. This shows itself in mild and shallow selling price bars or, in neutral price levitation. Gold simply does not want to sell with any conviction. Further, after a December futures drop from near $1,070 and back to $1,042.50, support for the B corrective wave this morning is back up at $1,055.40. This does not show me a market with serious selling on its mind. Can it come soon? Sure it can but so far so good. (more)
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