315 days (45 weeks) is a dominant frequency in a number of other markets, namely the
S&P500, so it was natural to assume gold traded in relative lockstep: both markets being
heavily influenced by dollar flows.
The origin of the trend lines is the starting point from which the degree of ascension in
gold increased (to become a higher degree trend), meaning the rally is accelerating (what
we discussed in the springtime).
The highest sloping line is a projection line, which when we touch it will signal the
next interim high. The lower lines are support lines, where heavy buying can be expected.
A breach of the top projection line that finds support thereafter signals we are
establishing an even higher degree trend taking us to between $4500-$5000 – but I
estimate that won’t take place until mid-late 2013 at the earliest.
I hope that clarifies a few things. Keep an eye on the charts next week and we’ll see how
accurate this bottom pans out. I’ll be going long sometime between Monday and Wednesday next week in the viscinity of 1620-1640. Long term uptrend and corresponding Fib support is to be found at 1623.
Minor resistance levels above 1623 are as follows:
Major resistance levels are as follows: