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Gold continues to do well of late, moving within 5% of an expansion/extension level that is based upon highs back in the 1980’s. At the same time Gold is approaching the Fibonacci level, it is nearing the top of its rising channel resistance line.
Suggested Gold could reach the $1,900 level a couple of weeks ago (see post here)
Should Gold reach these levels does it mean gold has to fall apart? NO! At (3) it did happen to decline over 20% each time though! Harvest long Gold positions and attempt to score on defense up here? Hmmm….
Always,, thank you for your great insightsss!
one of your fan from Korea.
Hambone…if gold gets soft, I would suspect Silver will decline more. For most if long gold, would just harvest some gains.
Senior Kimble,
any thoughts on swapping out of gold for silver or are they too correlated? Best to move to cash instead or are you actively going short? Thanks for your thoughts.
Hambone… Patterns are not indicating to the gold run at this time. If long Gold and liquid, I would harvest some at these level. If owing some physical, would consider some hedge, just to keep the quality values that a person has.
Check out this chart…this was the last time we harvested gold…this was a quiz, inverting gold. This quiz missed the high in gold by a single day…silver FELL 30% in no time after this key line was hit in the quiz!
https://www.kimblechartingsolutions.com/2011/05/what-would-you-do-13/
Then the pattern suggested to buy it again on a breakout in this chart…
https://www.kimblechartingsolutions.com/2011/07/gold-etf-channel-breakout-at-hand/
suspect at least this type of action could happen…Per a break above the 261% level, then gold adds another 20% quickly!
Hey Chris,
as always, appreciate the blog and your pov. Glad to pull up stop losses on my GLD.
Two questions –
1) if holding physical, I’m assuming you are not anticipating significant enough selling to sell off and then re-enter?
2) as per Jim’s question, if we bust through $1850…what sort of run would you expect and is their a reasonable target if this happens on a breakout?
Jim….great question! Around the $1,850 level.
I am wondering about where that red line eould intersect now? Is that $1900. Thanks for your wonderful blogs!
David….Don’t think so.
It has worked on this 70-year Dow log chart and been pretty beneficial to investors.
https://www.kimblechartingsolutions.com/2011/05/dow-faces-70-year-channel-resistance-bear-about-to-wake-up/
Chris
Is it dubious to draw straight trend lines on a chart with a logarithmic scale?