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The first chart below is one I created over two years ago, when Gold was trading just under $1,900 per ounce. The pattern suggested that Gold would trade flat to down for years to come (see post here). Since that chart was posted, Gold has declined almost $600 per ounce!
Prior to the September 2011 chart above, we had been "Bullish Gold!
One of the last bullish calls in August of 2011 before the top, came when gold was trading at $1,641 and the Power of the Pattern was suggesting that Gold would rally to $1,900 (and it did in less than a month) and then the plan was to … harvest gains at channel and Fibonacci resistance. (See post here.)
The above chart reflects the "GREAT DEBATE" in Gold right now.
- Left chart (Bearish Case): Gold has broken below its 10-year rising channel after hitting the 261% Fibonacci resistance level.
- Right chart (Bullish case): Gold, after retracing 38% of its 10-year rally, stopped on rising support.
Recently we bought GLD & SLV on key support levels and then took "Pocket Change Gains" (see post here).
The Power of the Pattern is sending a message that a rare and important situation is taking place in the metals complex right now. Would you like to know what that message is? For weekly updates, click here for more information.
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