My thesis, based on this chart, is that $GOLD will experience a major breakout through $US 1400 within the next 6 to 7 weeks. This sets the scene for the next major leg up in the miners and the juniors….just as the majority have left the sector in disgust, or expecting lower prices and given up altogether.
In order to take out an 800 lb gorilla, the market needs to first…test, second … test and on the third, take it out. Like slaying the dragon, the great hero, needs to test the defenses of the dragon a couple of times first, assess the weakest point, then move in for the kill on the third offensive move.
We should see at least $US 1420 in the next 6 to 7 weeks. What happens after that is anybodies guess, but one thing is for certain, a fire is about to get lit. Perfect conditions for a wild fire.