Sunday, November 21, 2010

What If Gold Trades Somewhere Between $1385 and $1335 This Week?



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Click on the chart to ENLARGE
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Question: What if gold trades somewhere between $1385 and $1335 this week?  
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I don't know, what?  
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Answer:  It makes a perfect pennant on the weekly chart and projects price to around $1550.
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Huh?  How do you figure that?
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Well, pennants are mid-point consolidations that gold often uses in its parabolic C waves to divide the entire move into two equal parts.  In fact, each of gold's previous 7 parabolic runs have tipped off the mid-point by some signal, such as a pennant, a bull flag, or a distinctly different slope of ascent.
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So you just find the bottom of this rally, use the pennant as the 50% line and project the final price overhead?  Sounds too easy.  Can you prove this?  What if you are wrong?
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LOL, yes I will show you the previous 7 parabolics, but not tonight - I have to go to work in the morning and need to get some sleep.
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Oh, and what if I am wrong you ask?  Hummm.....  well, then I'm wrong, silly.  First let's just see if the pennant is completed this week and then we will take it a week at a time from there.  Is that OK?
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Sure.  Why not?
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Good night.



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