In response to a PM to describe the diamond in gold, and for any others who don't normally read charts, I will post my explanation here:
The start of the gold diamond is Oct/98 and the lows and highs of 99 are the top and bottom of that diamond. Look at the chart and you will see a diamond shape if you connect the points from October 98 to the highs and lows of 99 and then the recent point at 266 here of late. This is called a diamond reversal because these diamond formations occur when prices consolidate and then typically reverse the trend, up from down, down from up. It is with GREAT curiosity that I have been following the exact formation forming in the Dow (from 1999 to 2001), except the Dow's diamond has formed at what looks like a top. In time we shall see how these two unfold.
As for measurements, imo a successful b/o will take POG to 348 and possibly higher. Diamonds typically signal a reversal, and the trend once reversed can continue indefinitely. I believe I am the only one who has noticed this pair of diamonds and so have point it out here on the GPM thread for discussion.
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