Gold's Technical Analysis Is Pretty Basic Right Now, Even Without "Trade the Cycles"
Gold's technical analysis is pretty basic right now, even without using "Trade the Cycles," see charts 1 and 2 at http://stockcharts.com/charts/gallery.html?$GOLD. In chart 1 at the link above one can see that gold's near term picture is clearly bearish, because, there is a nearly perfect bearish double top at $688.40 in late July and $688.10 in early August, below April's cycle high (Wave B cycle high of the Wave 2 Cyclical Bear Market since 5-11-06) at $698.
In chart 2 at the link above one can see that gold's long term picture is clearly bearish, because, gold has a downtrend since peaking at $730.40 on 5-11-06, which was a Wave 1 Cyclical Bull Market cycle high. Wave A down bottomed at $542.27 about a month later in June 2006, and, one knows that gold didn't bottom at it's primary multi year trendline (since April 2001) in June 2006, because, the primary multi year trendline would cut right through gold's chart in order to connect to $542.27, which can't happen with trendlines.
Gold's primary multi year trendline (since April 2001) is at $475ish right now, so, gold's Wave 2 Cyclical Bear Market since 5-11-06 should bottom in the $475-500 range in the next few months. Gold's near term and long term charts (http://stockcharts.com/charts/gallery.html?$GOLD) are so obviously bearish it's amazing that nearly all of the gold writers haven't discussed what's so obviously bearish. I haven't seen anyone discuss what I've discussed in this post and it's so obvious.
HUI/XAU's Wave 2 Cyclical Bear Market began 5-11-06, see charts 7 and 9 at http://www.joefrocks.com/GoldStockCharts.html. The primary Secular Bull Market trendlines since late 2000 are at 200-220 for HUI and at 85-90 for the XAU. Those are the targets for where the Cyclical Bear Market will bottom. NEM's Wave 2 Cyclical Bear Market began on 1-31-06. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
In chart 2 at the link above one can see that gold's long term picture is clearly bearish, because, gold has a downtrend since peaking at $730.40 on 5-11-06, which was a Wave 1 Cyclical Bull Market cycle high. Wave A down bottomed at $542.27 about a month later in June 2006, and, one knows that gold didn't bottom at it's primary multi year trendline (since April 2001) in June 2006, because, the primary multi year trendline would cut right through gold's chart in order to connect to $542.27, which can't happen with trendlines.
Gold's primary multi year trendline (since April 2001) is at $475ish right now, so, gold's Wave 2 Cyclical Bear Market since 5-11-06 should bottom in the $475-500 range in the next few months. Gold's near term and long term charts (http://stockcharts.com/charts/gallery.html?$GOLD) are so obviously bearish it's amazing that nearly all of the gold writers haven't discussed what's so obviously bearish. I haven't seen anyone discuss what I've discussed in this post and it's so obvious.
HUI/XAU's Wave 2 Cyclical Bear Market began 5-11-06, see charts 7 and 9 at http://www.joefrocks.com/GoldStockCharts.html. The primary Secular Bull Market trendlines since late 2000 are at 200-220 for HUI and at 85-90 for the XAU. Those are the targets for where the Cyclical Bear Market will bottom. NEM's Wave 2 Cyclical Bear Market began on 1-31-06. ....... http://www.JoeFRocks.com/ .
HUI NEM XAU
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, SPX, XAU
posted by Joe Ferrazzano at
2:16 PM
