Goodbye QE3 Hello QE4
by Stewart Thomson
The gold consolidation
may already be over. Please click
here now. On this one month chart, you can see that since QE3
was announced on September 13, gold has essentially moved sideways.
That trading box is likely a consolidation
here now. You are looking at a two day chart for gold. A small
but significant head & shoulders pattern has formed, implying
that the gold price will rise above $1800, before a correction occurs.
indicators and oscillators are overbought on the daily chart, but
they can stay that way, while gold marches higher.
hold solid core positions in gold, silver, and gold stocks should
stand their ground. Traders could lighten up a bit, in the $1775-$1825
here now. A beautiful channel has formed on the GDX daily chart.
A non-confirmation is highly likely now; GDX
could move higher, while the technical indicators move lower.
I would suggest
that traders focus their attention on the green HSR (horizontal
support & resistance) lines that Ive highlighted on the
chart. The indicators and the trend channel are exciting to watch,
but they dont offer the same precise entry points that HSR
investors should probably focus their buying around the important
HSR at $48.72. That point is also the neckline of a
double bottom formation.
click here now. The technical target of the double bottom is
the $56-$58 price zone. A rally towards that area would provide
a great profit booking opportunity.
Gold has climbed
about $270 from the lows, so keep in mind that any further strength
is only going to make gold much more technically overbought than
it is now, in the short term.
area should be viewed as the wild card zone,
because anything is possible. Gold could shoot quite a bit higher,
or careen lower.
fortitude is going to be more important than charts or economic
reports, during this stage of the gold bull market.
likely to get much more frightening, and price spikes could become
enormous. Unless the gold price arrives at one of your pre-set
buy or sell points, try to ignore all the intra-day stage
drama. The drama is nothing more than static noise interfering
with your golden symphony.
the rest of the article
© 2012 321 Gold