Below is a chart of gold beginning with the August 2007 low. If our latest bottom can hold in here at the 845 area it will give us a 4th reversal point creating a possible bullish falling wedge halfway pattern. What this chart is implying is that this move in gold is at the halfway mark in its move up to 1347 by the end of this year. The blue and red arrows measure the smaller triangle halfway pattern and the red and blue circles measure the much bigger bullish falling wedge halfway pattern. We still have alot of work ahead of us yet but if we can break through the top rail of the falling wedge, that would give me a better feel for the price objective at 1347.
FWIW, May and November are the 2 months where our 6 month time cycles like to show up. A bottom now, in May, and a top in November fits in perfectly with the chart below.
All the best…Rambus
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