Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Pre-COVID US Economy Wasn’t All That Great Either - 4th Dec 20
Bitcoin Breath Taking Surge - Crypto Trading Event - 4th Dec 20
Platinum Begins A New Rally – Gold & Silver Will Follow - 4th Dec 20
Don't Let the Silver (and Gold) Bull Shake You Off! - 4th Dec 20
Stronger Risk Appetite Sends Gold below $1,800 - 4th Dec 20
A new “miracle compound” is set to take over the biotech market - 4th Dec 20
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Precious Metals and the Gold Bugs Headed Higher? 

Commodities / Gold & Silver Oct 07, 2007 - 06:41 AM GMT

By: Robert_McHugh_PhD

Commodities Best Financial Markets Analysis ArticleGold finished the Minor degree wave 3 of Intermediate degree 1 up on May 12th at $730.40. Gold 's Minor degree wave 4 was a Symmetrical Triangle , a consolidation pattern of the Minor degree wave 3 rally that started back in 2001 and extended into the May 12th, 2006 top. Waves a through e within wave 4 are complete. A break above $730 has confirmed that the triangle is complete, and wave 5 up is underway, and is a “buy” signal .


The 50 basis point drop in the Fed Funds interest rate provided a burst of wind behind Gold's ascension, driving it above $730 quickly, as was mentioned would happen in this newsletter three weeks ago . Wave fives typically extend with precious metals, so for wave 5 ,$900 is not out of the realm of possibility for Gold in 2008.

Silver's performance is lagging Gold's since Silver has industrial use, and the stock market's dive is forecasting a slowing economy, which suggests industrial demand for silver may slow. However, Silver also has monetary value, so its downside should be limited. Silver finished its Minor degree wave 1 up, and it appears an Ascending Bullish Triangle is back in the picture. An alternate which is that the pattern has morphed into a wave 2 -down a-b-c flat, with a truncated wave c- down. Not crazy about that labeling, but is a possibility at this time. It may have more downside left before a huge rally unfolds. A decisive breakout above 15 would confirm that wave 3 up of 5 up is underway.

Once Silver rises above $15, then it is off to the races toward $21 as wave 3 of 5 up kicks in. Wave fives typically extend in precious metals, a solid reason Silver could be headed for $21. Silver is approaching $14 as of Friday, September 28th, perhaps putting the finishing touches on wave d up.

Gold stocks could experience a minor correction of their recent amazing rally should the broad major stock averages go into decline this month. But, then the HUI should be off to the races.

The HUI bounced sharply from its latest down-leg to complete its one-year-old Symmetrical Triangle pattern . This pattern was a continuation pattern, meaning the direction of prices going into the pattern will be the same once the pattern completes — in this case up .

That rally began in Mid-August, and the first leg, Minuette wave i up completed in mid-September. Since has been an a -down, b- up, and soon to start c -down for Minuette ii down. Then the HUI race toward $500. Given the new “buy” signal we just got in the HUI, the alternate labeling, that wave ii down was a shallow “flat” pattern is another possibility.

“Jesus said to them, “I am the bread of life; he who comes to Me shall not hunger,
and he who believes in Me shall never thirst.

For I have come down from heaven,

For this is the will of My Father,
that everyone who beholds
the Son and believes in Him,
may have eternal life;
and I Myself will raise him up on the last day.”
John 6: 35, 38, 40

For a Free 30 day Trial Subscription , go to
www.technicalindicatorindex.com and click on the button
at the upper right of the Home Page.

by Robert McHugh, Ph.D.  
technicalindicatorindex.com

If you would like a Free 30 day Trial Subscription , simply go to www.technicalindicatorindex.com , and click on the FREE Trial button at the upper right of the home page. A subscription gains you access to our buy/sell signals, our Market Analysis Newsletters, Traders Corner, our model Conservative Investment Portfolio, Guest Articles, and our Archives.

Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a registered investment advisor in the Commonwealth of Pennsylvania, and can be reached at www.technicalindicatorindex.com. The statements, opinions, buy and sell signals, and analyses presented in this newsletter are provided as a general information and education service only. Opinions, estimates, buy and sell signals, and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this newsletter is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. Neither Main Line Investors, Inc. nor Robert D. McHugh, Jr., Ph.D. Editor shall be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. Copyright 2007, Main Line Investors, Inc. All Rights Reserved.

Robert McHugh, Ph.D Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules