Noted technician Martin Pring is quoted on many websites saying:
"Gold could be on the verge of a historical breakout. Watch that $990-1,000 area like a hawk."
Marketwatch link
For those that don't know Martin Pring, he is the author of 25 books on technical analysis and trading (book list). Pring's books have been used to train many a trader.
As always, technical analysis is open to interpretation. Just because someone has written books on the subject doesn't guarantee that their calls will be correct. Traders that claim 100% track records tend to be liars, and/or hindsight traders that redo their trades after the fact and only trade on paper.
The term "historic breakout" is also open to interpretation. For some, a marginal new high to $1100 would be "historic." Some are looking at the width of the channel from $700 to $1000 to get a price target of $1300. One scenario that I am looking at is a rocket ship launch on earth shattering news and huge volume that takes gold to $3000 within a year.
Stock market (SPY) closes about the 200 day-moving average. As I mentioned, one scenario is a whipsaw move, after long termers think it is safe and get back in, take it down and whipsaw them out. (Many long termers use the 200 DMA as a timing tool.) That said, I think even if this unfolds, any correction is likely to be relatively modest (10% or less).
Positions: long SPY
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