Gold Re Accumulation is Health

By: readtheticker | Thu, Dec 20, 2012
Print Email

Gold is under going a complex A-B-C correction. So far is very healthy.

The benefit of the doubt is that the current gold (GLD) pattern is one of re Accumulation. Why? Because we have not seen a traditional distribution pattern (double top, head and shoulders, triple top, rounding top). Plus the ECB, BOJ, FED, BOE are still expanding their balance sheets.

The recent rally is an easy spot for a Wyckoff Sign of Strength (SOS), sharp move up with good volume support. The problem for the whales in the market is that every one can see it. The current sell off (ie C wave) should be enough to trick, frustrate and scare the weak hands out of the gold float to the strong hands and only then will a substantial rally occur. The more tame and shallow the C wave is the more bullish the pattern is. Please note that Gold can still fall to 120 or 130 and still be very be bullish, as the 'C' wave is frustrating wave at the very least.

The recent sell off during the last full week before Christmas holidays is in sync with USDJPY rally and Apple Inc sell down which means some folks have to sell something profitable to balance their trading book before year end.

The 'C' wave becomes very nasty if volume explodes and price accelerates to the downside. So far easy sailing.


Larger Image

 


Comments can be left here.

 


 

readtheticker

Author: readtheticker

readtheticker
www.readtheticker.com/
www.readtheticker.com/Pages/Blog1.aspx

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online stock and index charts with commentary. We are not brokers, bankers, financial planners, hedge fund traders or investment advisors, we are private investors.

LEGAL DISCLAIMER: The material is presented for educational purposes only and may contain errors or omissions and are subject to change without notice. Readtheticker.com (or 'RTT') members and or associates are NOT responsible for any actions you may take on any comments, advice,annotations or advertisement presented in this content. This material is not presented to be a recommendation to buy or sell any financial instrument (including but not limited to stocks, forex, options, bonds or futures, on any exchange in the world) or as 'investment advice'. Readtheticker.com members may have a position in any company or security mentioned herein.

Copyright © 2011-2014 readtheticker.com

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/