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Let's get ready to rumble page 3 Interestingly, the Goldprice in Euro is rising since the beginning of 2005. More interestingly, the (still) prevailing "sideways" movement since 2002 took the shape of a triangle:
The rise since 2005 is the impulse movement after having finished 4 waves within the triangular boundaries. The aim of this movement apparently is to break the upper leg as it already started to move upwards. The final round of the battle "Euro versus Dollar-Goldprice" started with the New Year. The Silver price is already in an explosive Thrust out of the blue triangle since the beginning of 2005, but is facing strong resistance which was marked by the previous breakout. As soon as this resistance is being broken, the Euro-Silver price is poised to rise strongly to 0.070 (which is equal to about ¤7 per ounce):
The Silver price in Dollar has dropped sharply to its dominant 300 days Moving Average (MA) curve which represents strong support:
Taking a closer look at the Dollar Silver price movement since the end of 2003, one can see that the supporting lower leg has not been breeched in the last 2 days of heavy losses. As 4 waves are already finished within this triangle, a breech of the lower leg can occur, whereupon a strong backlash to the upside must occur immediately, or the price threats to fell sharply. The RSI-, PPO- (price oscillator) and Slow Stochastic-Indicators are at the green support lines at the moment. Same applies to the price relative to the Dollar. The ROC (rate of change) Indicator yet would have some room to the downside before final support is reached.
In the last days Silver was losing more heavily than Gold. A good question is whether Silver will be outperforming Gold in the near future. The next chart of the Silver-Gold-Ratio tells us, that a decision is in the final legs of being made:
The recent underperformance of Silver relative to Gold was heavy, but has reached support yesterday:
Not only the good old days of the artificially pumped up Mr Universe, the Rand, are likely to be over sooner than later, but the above charts also suggest that crucial decisions are being made soon, in which direction the markets will trend to. Whereas some triangles will act as a "correction" pattern of the prevailing trend, some will show their explosiveness as "continuation" pattern soon. As it's difficult to speculate which ones will "definitely" shoot up or down, the only thing we can be sure of in the next years is that the Rand, along with its paper mates, will be found where they belong to - as being "paper;" or as François Voltaire puts it: "Paper money eventually returns to its intrinsic value... "
References: See more great cartoons from Rico Schacherl & others on economy, currency and other aspects of daily life at the following great website: www.madamandeve.co.za | www.rapidphase.co.za/Rico Stephan Bogner 321gold Inc |
