|
“Time is more important than price; when time is up price will reverse.”
W.D.Gann
Gold bullion had a dramatic decline recently. From the high of $1,017.50 on March 17 gold has declined $137 to a low of $880.50 as measured by the nearest most active futures contract. However, this should be no surprise to subscribers. Ever since gold made a new all time high we have been expecting a return to the breakout level of $850 and possibly a closing of a gap at the $843.50 level. Platinum, copper, and crude oil, once making new multi-decade all time highs, returned to their breakout levels and tested those levels to be certain that they had become support and were no longer overhead resistance. The return to those breakout levels acted like a coiled spring. Once the tests were completed the dynamic portion of their rise began. I expect the rise in gold to be more dynamic than any other item since the commodity bull market began. Why should anyone be bearish on gold when it is doing exactly what it should do and exactly what should be expected? There are no bearish prognostications about gold in this writer’s reports. Quite the opposite is the case. I do not care to defy the obvious. Let’s take a look and see just what a few of the obvious facts are.
Platinum, once having exceeded its multi-decade high of $1,045, returned to that level and tested it for support. The test was passed with flying colors. The price of platinum since the test has more than doubled.
PLATINUM MONTHLY CHART
Once copper exceeded its 16 year old high of $1.585 it also returned to that level for a test. The test was to see if $1.585 was truly the new support level. Not only was $1.585 the new support level, but it was the launching pad for a meteoric rise that may not be over.
COPPER MONTHLY CHART
Just like platinum and just like copper, once crude oil closed above its all time high of $41.15 a barrel it returned to that level for its testing period. We all know what happened to the price of crude oil since that successful test. According to my calculations crude oil has approximately another three years before it approaches a cyclical top.
CRUDE OIL MONTHLY CHART
Now that gold has exceeded its multi-decade high of $850 an ounce we hear some folks saying that the rise in gold is over. They write and say that the fact that gold has had a dramatic decline in price means that the bull move is over. If they would look a little closer they would see that gold is doing exactly what it should do. It should and is in the process of testing its previous all time high of $850 an ounce. Once again, just like platinum, copper, and crude oil, the test is for the purpose of proving that the old multi-decade high of $850 an ounce is now the new support level. Part of the testing process for gold may be a slight decline below $850 in order to dump a few insecure doubters. Let us not allow ourselves to enter the realm of insecure doubters. The proper attitude is that another successful test is underway. Once the spring is fully coiled and the testing process is complete, the true bull gold market voyage will begin. If you are still not convinced, the 10 X 3 point and figure gold chart should prove to be an eye opener.
GOLD MONTHLY CHART
The trend line on this 10X 3 point and figure chart for gold bullion has been in force since the bull market began over 8 years ago. It has not been violated. If a return to the trend line occurs during the current testing period the trend line informs us that the test should be complete at approximately $840 to $850 level.
GOLD POINT & FIGURE 10 X 3
 /p>
If you are an investor or an active trader who would like to utilize prompt and precise trading information that includes Delta Turning Points and the work of Alistair Gilbert and Ron Rosen
Subscriptions are available at: www.wilder-concepts.com/rosenletter.aspx
Stay well,
M I G H T Y I N S P I R I T
Ron Rosen
***
Disclaimer: The contents of this letter represent the opinions of Ronald L. Rosen. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Ronald L. Rosen is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Ronald L. Rosen cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions.
|
