|
| Just my simple view at looking at the 10 year gold chart only. Huge RISING WEDGE pattern accompanied with decreasing volume since the 2008 low was formed around 675. (Volume should be increasing if this is a real bull from the 2008 bottom but instead decreased unlike the run-up from 2000 to the march 2008 top when VOLUME did increase. ) When the lower trendline breaks this pattern calls for a move all the way back to where is started which is near 675. Notice though if prices do drop back to 675 like they should if that lower trendline is broken....Were STILL in a long term up trend!! I will become a gold buyer when we go below 700 and not until then!! I will be selling after a weekly close below this trendline...or there is a chance that we go up and touch the upper trendline one more time just over 1300 and I will be shorting there also.
HEre is a little info decribing a rising wedge pattern I found on another site. Also my chart is below.
"Because the trendlines that describe the rising wedge are ascending, rising wedges are occasionally falsely thought of as continuation patterns for an overall upward trend. The seeming upward trend in asset prices invites bullish traders to begin investing in the asset, while bearish traders continue selling off their holdings and maintaining the strong upper line of resistance. (This is reflected in the smaller slope of the upper trendline in the pattern.) Since prices refuse to break the upper level of resistance, buying pressure gradually decreases, the lower level of support is broken, and the asset usually enters a strong downward trend. Thus a rising wedge should be taken as a strong sell signal and an indication that a market reversal is imminent. "
http://i25.tinypic.com/2usjrex.jpg | |
|
GOLD chart.... since alot seem interested
