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  • Gold Looks 90% Bullish

    Posted on May 21st, 2009 1 comment

    How many times have we heard of a triple top? Double top, frequently, but a triple top is definitely not frequent. In most cases when a stock or a commodity makes a move to test a resistence level for a 3rd time, it’s going to be the last time you see that point as a resistance. That’s right, you can easily expect gold to slice through $1000 within the next 2-3 months.

    For the past 3-4 weeks gold has been building momentum. Not like last time where we jumped $70 in a day, but instead by $10 a day with very healthy pull backs. Certain indicators which I tend to keep private tell me that gold is going to explode. I have taken fairly big positions with my linked Covestor account so everyone can keep track of the progress, and so far I’m up a healthy 48%.

    Let’s look at the chart…

    Gold Chart

    Gold Chart

    Let’s note that the stochastics on the daily over the year are embeded, which mean we are heavily bullish. All my moving averages are ontop of each other, but we must also take note that we broke the top bollinger on the daily. At this point, I’ll wait for a pullback to around $945 to build a larger position. Either way, if you plan to hold for a few months I would feel very comfortable buying at $950 as well.

    Enjoy trading everyone and I’m really sorry for the delay in my updates (work has become busy!)