Extracted from Sept 14, 2014 Market Update
Gold would still have to remain above 1280 for the bullish outlook to hold, though it could trade down to 1250 without changing the outlook to bearish. A move to 1250 would simply turn the short to intermediate term outlook to neutral, in line with the current long term outlook. This extreme move in price is due to the fact that in the long term time lines the pattern and trend are both still neutral. Until it turns bullish we can expect wild swings in both directions. Market Update August 26, 2014
Gold Approaching Critical Juncture; the 1200 range barrier. If this level is taken out then its virtually guaranteed that Gold will trade to new lows and take out its current low of 1185 with ease. The dollar is rising and Gold has stopped trading in tandem with the dollar. Interestingly the Loonie is trading higher in unison with the dollar. This is the back breaking correction we spoke off long time ago when Gold was trading at lofty levels. Every major bull market experiences at least one back breaking correction that gives one the impression that the bull market is over; this line of thinking is pure nonsense and we suspect this move down will scare many a gold bug. Just remember that the best time to buy is when there is blood on the streets and right now the Gold market is bleeding and soon there will be raging river of blood; it’s at this time the smart money will swoop in and scoop in large amounts of Gold for next to nothing and then laugh all the way to the bank in the years to come. If you have extra funds, use the dips to add to your position, especially Silver bullion.