Thursday, October 25, 2007

BOOM!


What we are witnessing in Precious Metals may be a "monumental moment" in this secular bull market. When opportunity knocked, did you answer the door?


Flag, Pennant (Continuation)

Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a mid-point of the move.

Targets: The length of the flagpole can be applied to the resistance break or support break of the flag/pennant to estimate the advance or decline.


To read more, and please do, click on the link above. Using the information provided, and interpreting this evenings move higher in Gold correctly, the measured move higher from here in Gold could be to 821.90. Measure the move just from the symmetrical triangle, and the move is to 797.30.

Silver broke from it's consolidation today at 13.84, and it's minimum measured move from said consolidation is 14.43. However, considering Gold's potential here, Silver would most likely move considerably beyond that. It should be noted that the Gold/Silver ratio is close to favoring Silver. I will have more on that possibility next week.

ALL shorts in Gold and Silver should be closed IMMEDIATELY. This move may not look back.

I will not have a post Monday, as I will be traveling.

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