The Morgan Report Blog

Gold will head to 1480-1525 before a major correction

Gold will head to 1480-1525 before a major correction
David Banister- www.markettrendforecast.com

Excerpted from TMTF November 28th:

Gold has been consolidating other than a spike to an intermediate wave 3 top of $1424, for about 7 weeks or so now.  It’s typical to see Fibonacci periods of time as part of consolidations whether it be an individual stock or a precious metal in this case.  Gold was overbought at the $1425 pivot highs a few weeks ago, and that terminated what I label a “wave 3″ pattern.  This led us into a 4th wave corrective pattern which we remain in now.  My worst case pivot low is expected at $1,321 and so far we have seen $1,331 an ounce and then an ensuing bounce to $1370 ranges.

In the intermediate term then, I’m looking for further consolidation likely for another week or so followed by a breakout over $1425 leading to my objectives of $1480-$1525 to complete the entire rally from the $1040 lows in February of this year.  Many are starting to get bearish on Gold and Silver up here, and to me that is bullish and indicative of “4th wave  mentality”.  In a 4th wave, there is growing bearish sentiment, but not so much as to topple the bull structure.

To wit, last week in my ATP service I recommended a brand new Core Position in the Gold,Silver area and it rallied as much as 40% intra-week at it’s highs.  We are in a super bull market for Gold stocks as I outlined in August of 2009, and we have another four years left to go.  I’m seeing alot of amazing chart patterns in the Junior space that are in relentless climbs.  Owning the the explorers that are finding the Gold is how best to take advantage of the remaining four years.  At ATP, we are exposed to Rare Earths, Silver, Gold, and Oil and Gas related plays in our Core Positions.  Make sure you own hard assets and precious metals resources one way or another.  My silver forecast in late August was basically predicated on the small investor swarming into the Silver market to buy up coins, look for that to continue and Silver to be over $30 in the not too distant future.

Below is my updated Gold forecast using a weekly chart, remember to Keep it Simple!

 

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