Price Time Volume Investing

The price of gold is holding up extremely well following the 1999-2008 bull market.  Price remains above the 1×1 angle but time has not reached 25% of the bull market time cycle.  There is no reason why price cannot continue higher as it is possible that the recent correction was only wave 4 of the long term market trend.

The bounce of the correction beginning in 2008 has completed 100% of the time cycle of the decline.   If the trend is going to continue higher, then I expect the 1×2 angle (near current price) will serve as support.

The combination method chart below shows a number of interesting cycles and patterns.  The swing chart shows price has little momentum to the downside.  The calendar day count shows the bounce topped out at day 120.  While the entire 2008-2009 correction can be viewed as a cup with handle, another exists within that handle.  All things considered, I think gold is setup to move higher and above the 2008 high.  Of course, this trend could change.  But if it does, it will be obvious within these charts.

Related Posts

• Gold Breaks Out Toward 1200 (October 12, 2009)
• Picking Price “Targets” (September 20, 2009)
• Gold Strong And At March 2008 High (September 18, 2009)
• Gold Indicates Inflation While Other Commodities Point to Deflation (September 11, 2009)
• Gold Showing Strength After 180 Day Correction (September 4, 2009)

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