Wednesday, February 3, 2010
In overnight trading. Here's a chart up thru middle of the night trading to show how close we are to a confirmed break-out in Gold:
My outlook and prediction is becoming stale but I'll repeat it again: new highs for the Gold price and Gold stock indices before spring is over. I think $1350 Gold is the bearish scenario and $1750 the bullish scenario. I remain all-in and biased as hell. I think Gold stocks will significantly outperform on the way to the peak.
I think we have just completed a small wave IV in Elliott Wave terms (a la Alf Fields, not Bob Prechter) for the price of Gold and the 5th wave up that has likely already started may well be an extended one. A significant break above the trend line in the chart above is needed to confirm this bullish scenario and then any "back test" of the trend line from above, which would not be unusual, must hold. Have I mentioned that I remain wildly bullish on the precious metals sector?