Gold Price Breaks Out of Pennant

Did you have the conviction to buy gold into the 4 week low? If you buy gold after the move you are chasing strength, but the Gold Bull Market will save you. It may test your patience as the breakout of pennants can retest the nose before marching higher. The next magnet as Jim Sinclair has mentioned is the 887.50 area.

Gold Price at Bottom of a Pennant Formation

The gold price is in a very bullish pattern, if the Pennant fails it is more likely a bear trap and would complete a flag pattern. The Cartel often pushes the gold price to test and even briefly break trend lines .

These areas have always been a great place to add new capital. Dollar cost averaging has been a great way to capitalize in the gold market over the past 5 years.


The gold shares have been pounded into the oversold area showing 30 on the RSI today on many indexes and are begging for a bounce.

Ron Paul Invests in Gold Stocks

Presidential hopeful Ron Paul wants to bring America back to the gold standard and has personally invested $1-$3 Million in Silver and Gold Stocks.

Ron Paul's Gold Stocks (pdf file)







Ron Paul sings Gold Finger

Has the Silver Price Shown the Lead for What is Next for the Gold Price?

The silver price may have taken over the lead as many precious metals analysts have claimed it would do. While the gold price continues in its coiled spring failing to break out yet on its march to $900, the silver price has popped above a recent down trend line. Silver has levels of resistance to work through before challenging its recent highs, but may do so before the gold price tests its recent highs of $845.

Impulse wave 2 in the GOLD PRICE underway.

The first wave usually goes unnoticed and catches many off guard. After a correction or consolidation period, the ones who missed the first move jump on board.

For more on Elliot Wave Theory.. click here

Gold Price Consolidating and Forming a Very Bullish Flag Pattern

The bullish flag forming in the gold price is another consolidation pattern. With the fundamentals so bullish the breakout to the upside in gold could be very explosive.

This is only the first consolidation since gold broke out in September 2007. The likely target for this next rally is $887.50.

Another consolidation pattern in the gold price is likely to occur at much higher gold prices just as it did in 2005-2006.

Bedford & Associates Research Group Inc provides this Definition of a Bullish Flag Pattern:

Technically speaking, a bull flag is a sharp, strong volume rally on a positive fundamental development, several days of sideways to lower price action on much weaker volume followed by a second, sharp rally to new highs on strong volume.

Giving this reason why bullish flag patterns occur:

Bulls flags are favored among technical traders because they almost always lead to large and predicable price moves. Like all continuation patterns, bull flags represent little more than a brief lull in a larger move higher. Indeed, in many cases the flag pattern will actually take shape in the middle of the ultimate move higher. Bull flags occur because stocks rarely move higher in a straight line for an extended period, instead, the move higher is broken up by brief periods where traders "catch their breath".

If you have not bought gold or have been waiting for a pull back in the gold price to buy more gold, now is an excellent time to be accumulating gold bullion on any dips. Buy gold when it dips in price and if it goes lower, buy more! This gift of lower gold prices will not last much longer.