Looking at the ten-year spot price chart for gold gives three intermediate price projections.
The most bullish is $950, measuring the move from $450 to $700 and projecting the same move from $700. The next would be the width of the wide triangle from $550 to $700 and adding that $150 measurement giving a target of $850. The third target would be to take the most recent trading range of about $50 to give a target of $750. Reading charts can be like reading tea leaves.
As I wrote in rock, paper, scissors, that in my experience, technical analysis and chart reading can and will be overwhelmed by external news events and fundamental news. If someone patents a device tomorrow that cheaply extracts gold from sea water, the price is going to be limit down, no matter what the charts say.
As readers know, I have been on a losing streak, so it is very tempting to cash in the most modest of profits.
Long GLD straight, long GDX hedged
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