Thursday, February 17, 2011

Gold accumulation pattern

Gold is at the same level it was back in mid-October of 2010. A 4 month sideways trending pattern is something to keep a close eye on. Generally this type of accumulation is setting the stage for a significant move. Considering the fundamentals of gold, I am guessing the move would be a powerful one to the upside very soon. Technical indicators flashed a buy as of last 2/12/2011.

Silver technicals have maintained their bullishness right through the recent rally. As of today silver broke to new high of $31.74. Keep in mind James Turk's view that silver only recently begun phase 2 of its bull market, whereas gold is already in phase 3. Silver therefore has a long way to go and its performance in the years to come should be truly spectacular and easily dwarf that of gold.

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