Gold continues to be one of the few strong commodities in the market. Food and Beverage is the other I see with strength. The price of Gold is well above the 1×1 descending angle and attempting to take out the 2008 high. Normally, price should not move up after a significant top before completing 25-50% of the time cycle of the previous bull market move. It is possible that the 2008 top was only wave 3 which mean Gold may have quite a run remaining.
Price did bounce off the 1×2 angle at we approach the 150% time cycle of the 2008 correction. The fact that the 1×2 angle provided support is encouraging.
Note that I am not a fan of Gold as a long term investment. But I am a fan of making money and the chart of Gold is extremely strong. If the breakout above the 2008 high fails, then I will reconsider my expections. But the chart gives no indication of failure at this time.
The three bar daily swing chart off the October 2008 low shows three phases of this move. There was a strong move up for about 120 days. Then a correction for about 180 days. Price began to move up about 10 days ago and has been very strong the past two days. A break to an all-time high price will bring in everybody and his stupid cousin. The ride up may be be far and fast. Just remember to get off near the top. Nothing lasts forever.
Update: Note that the low of the correction was made at exactly 45 days from the high.
I am about to get on a plane and head back to Pennsylvania after two weeks here in Arlington, Texas working my day job. I got to see a Rangers game which was interesting. I didn’t have time to check out Jerry’s World down the street where the Cowboy’s play. Wish me luck on the flight home. Those can be “interesting”.
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