Posted 25 September 2005 - 05:46 PM
Next week should be positive for gold. What will be interesting to watch though will be the behaviour of the miners. Another run towards XAU 115 and HUI 250 - 260 is what I expect. I see gold in wave 3-4 of the attached wave count. In otherwords, gold will test $456 - 460 on Monday, then head for higher highs around $480. Then we should get a more sustained correction. If the miners can't get legs next week, I'll be defensive on the sector. And if we do get the rise to new highs, I'll be trading out of positions taken on the last dip to HUI 200.
I'll borrow McHugh's chart here for the ST count. No way I agree with his overall gold count though. Targets are much higher for a major breakout next year. And we can't possibly top by putting in a wave 1 and then finish a wave 2 by some time next year. The LT count is something else, not this. We most likely are in an extended 5th wave for gold right now, and it will prove to be an extended 5th wave peaking in 2007. I'll give the nod to astro on that one.
McHugh's latest:
Gold's March Toward $500: Will Silver Follow?
cheers,
john
"By the Law of Periodical Repetition, everything which has happened once must happen again and again and again-and not capriciously, but at regular periods, and each thing in its own period, not another's, and each obeying its own law ..." - Mark Twain
