Gold Update

Eddy Gofsky
Jul 24, 2009

Gold is on the cusp of a massive breakout and a move above $1040 will make all 3 bullish chart patterns valid and give targets of $1200-$1300 by Dec 2009 and much higher targets later in 2010.

The three bullish chart patterns are.

1. A massive head and shoulders bottom.
2. A Cup and handle pattern.
3. A wave 3 up move.

The only bearish view is that there is still a wave c bottom to come in gold that would take gold to the low $700 level before the wave 3 rise would start. My belief is that this outcome is highly unlikely and the odds that gold makes a big move right here are 3-1.

Also the last 2 major moves in gold in 2005-2006 from $450-$700 and 2007-2008 $700-$1030 both started in late July and lasted all the way to the March/April time frame almost straight up!. We are at this sweet spot for gold and gold stocks right now!

Here are 3 charts that explain my point of view. One bullish gold chart with all 3 bullish views labeled and the bearish chart on gold, and the chart of the XGD which is an ETF of Canadian major gold stocks.

Edwardgofsky.com

Jul 22, 2009
Eddy Gofsky
email: eddy_gofsky@yahoo.com
website: www.edwardgofsky.com/

Edward Gofsky lives in Vancouver B.C, Canada where he studies Elliott Wave Theory and Classical Technical Analysis.

Copyright ©2003-2009 Edward Gofsky. All Rights Reserved.

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