Sunday, July 31, 2011

Gold aiming for a s/t top in August in order to correct into September

The following reads like a symphony with numerous harmonics. We have run countless analysis that came up with a host of different parameters and that in summation all seem to tell the same story.

Let's see whether all these reflections can make a whole picture.

Let's start with our Options work. We clearly see that we are in a topping pattern for Gold and for Silver. Previous pattern hint at the possibility of neg. Div's in the making. All would hint at a top in the foreseeable future. (We are not talking here about long term Tops, we look at tradeable medium term one)

Next comes the Exhaustion analysis on Gold in Euros that is clearly warning of a medium term correction.
Now look at all these TimeCycles Charts that are all telling the same story. All feel like snapshots from different perspectives of the same story.

Silver: Top in Aug, Low in Sep
GOLD: Top in Aug, Low in Sep
GOLD/SILVER RATIO: Top in Aug, Low in Sep
GOLD in EUROS: Top in Aug, Low in Sep
REAL GOLD (Gold measured by a Commodity Basket/ trades inverse to the RISK TRADE) : Top in Aug, Low in Sep
Conclusion:
Expect some hot action in GOLD and SILVER over the next 2 weeks and then put in some tight stop loss orders to pause the Precious Metals trade into September to get in position for the yearend rally.

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