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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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