SUDDEN SHIFT, FICKLE FOLKS
What a difference one week makes! With a gold price daring the $1000 mark in defiance, boldness prevailed, investors took heart, analysts cheered, and the establishment cringed. This week, with a very ordinary selloff in consolidation, optimism has vanished in what can only be characterized as silly. Gold & silver will take over the globe as anchors in a sea of shifting sands, all in time. We have seen the crude oil price fall from $140 something to $40 something, the Dow Jones Industrial stock index fall from 14,000 something to 7000 something, the housing price index fall every month by over 10% on an annual basis, and hundreds of billion$ vanish in bank equity. But gold falls from $1000 to $940 or $950, and suddenly the precious metal story is repudiated? Utterly absurd! The currencies of the world are one by one being discredited. Gold and only gold can take the mantle within the financial sector. Gold and only gold can grab the reins of the horse team run wild. Watch as crude oil and energy supply generally takes a different mantle within the barter arena of the commercial sectors. They will bypass the corrupted commodity price discovery system. New currencies have already been agreed upon. Their inception requires only the passage of time. They will be launched amidst the growing crisis whose script has been written.
CONSOLDATION AT THE HANDLE OF THE CUP
The gold price broke above the 980 resistance level. Doing so technically did not come convincingly though. The U-shaped reversal pattern is clear, nicely rounded, enough to warrant the name ‘Cup & Handle’ from the charting lexicon. The top of the cup is 980 on the left side and 1000 on the right side. The positive bias is bullish. Notice all moving averages are in bullish mode, having crossed over. The bull run in gold has come from a bottom of roughly 700 up to 1000. The corrections in December and January were not small. Now the February correction might not be small. But they are fit within the bullish scenario. The MACD cyclical still looks healthy and strong. Support in the current pullback and consolidation appears to be in the 900 to 925 ribbon range. THE GOLD CHART IS CARVING OUT THE RIGHT SIDE HANDLE IN THE CUP & HANDLE REVERSAL PATTERN. From there, a breakout comes
