sell on the bounce, page-73

ctindale' mate March 2008 in gold is a totally different animal to Feb 2010.

1)In March 08 gold put in a massive reversal at the end of an exhaustion run after crossing 1K for the first time and in the process signaling an intermediate top

2)In late 2009 gold crossed 1K for the third time which and for the first time in history a weekly and monthly close.

"Old ceilings become new floors"......

3)Breaking the $1k level in late 2009 also broke a double top and in the process the neck-line of a massive head and shoulders the target of which has yet to be met.

4)Having hit new all-time highs in December gold consolidated forming a "bullish wedge" pattern which has since broken to the upside.

5)The USD is fast running out of support as can be evidenced by the massive short position of the commercials. Their biggest short position in memory. This is the presage to the next major decline.

6)The USD was well below its 50WMA indicating that the dollar was way oversold and due a bounce.
And the 50 WMA has just recently given a bearish signal.

7)The next decline in the USD is a Primary Wave Three that when it takes out the March 08 low shall usher in a brutal drop to new lows and a target in the low 50's

I could go on and on, however a simple look at the intermediate term charts of the USD and gold and a comparison of price action following March '08 and December 09 should be all that one needs.

http://stockcharts.com/h-sc/ui?s=$GOLD&p=W&b=5&g=0&id=p28183577633

http://stockcharts.com/h-sc/ui?s=$USD&p=W&b=5&g=0&id=p28183577633