Monday, 12 August 2013

Gold in green zone. Will pullback happen to test uptrend soon? 2013-08-12

There have been some really great calls from Rick Ackerman and Doc Richard Postma on this market over the past few months; absolutely top class and objective. They are to be found on the Al Korelin Economics Report!

Don't give up resources as your foundation for your show Al. You have the right people and the right subject matter right now!

Guess what? Gold has gone over 1000 Euros today, at 1004 EUR. From an EU perspective (German, say) that is probably an important psychological level.

Gold is breaking out of the downtrend channel nicely. I like Rick’s $1428.80 target. It is practically equal to the important top in gold in late 2010. I never liked that top. It was a quadruple top with the last high of the four being lower. It looked like a rollover or some kind of distribution but the correction went to only $1309 before going above $1500 then to $1920. It was all a bit too much too soon and with 20:20 hindsight, it was indeed that!

I wonder if gold will take a pullback soon. This is a strong upmove. A pullback would confound some people and ditch a few of the momentum crowd who might be piling on here. Maybe abut a $25 pullback now or from a slightly higher level of about $1350 or $1360 would look neat. Gold seems to be slicing through resistance at the moment, a little fast maybe.

There is a lovely new uptrend channel forming that is parallel to the move from the $1180 low:

Ranting Andy Hoffman is also worth a listen: "Ranting Andy Hoffman - Back from China" on today.

Here is my green zone chart:

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