I’ve sent out a few charts this year to give the update on the gold trade. I’ve been trading Gold using chart patterns since 2008. This was first time I went on CNBC and stated it would Gold would hit $1500 back when it was trading at $850.
This is Mark Haines, Erin Burnett and I back in 2008. I will miss Mark deeply.
So far in 2011 Gold stills trades very well according to patterns.
** Macro Pattern #1
The Descending channel that broke to the upside after the January Correction
Entry#1 was February 3rd when it broke it’s Descending channel and the entry was around 132
** Macro Pattern #2
Break Out into New Highs after nice upper consolidation
Entry #2 — April 8th around 140.50-141
**Macro Pattern #3
Break out continuation
Entry #3 — April 14th above 143.85-144
**Macro Pattern #4
REDDOG REVERSAL SELL SIGNAL- Outside Bearish day.
May 2nd was your sell signal at $153.03
**Macro Pattern #5
Tight lower wedge- Range resolution
May 20th we saw a lower consolidation- market wasn’t sure if we would get continuation to downside or a move back up
Gold gave you another long entry after if resolved the upside above 146.25
If you entered gold based on my call last Friday to re-enter- this is a spot to lighten up after a nice weekly move.
Disclosure: No Position