Andrew - The Aden sisters posted their current analysis on 321gold yesterday. Here's a snippet:
"A new D decline is now in process and it'll be important to watch it. Gold is under pressure in the D decline by staying below $380, but bull market declines also tell us a lot about the overall health of the market. D declines tend to be the steepest decline in the cycle, but in a bull market, the low is usually higher than the prior B low, which was the July low at $342.
Interestingly, this is the same level as the 65-week moving average, which makes $342 a strong major support level. But if gold stays above $362 during this weakness, it'll remain very firm, which would be a strong sign overall.
As for timing, D declines tend to last 9-12 weeks. This means we could see downward pressure on gold until Thanksgiving to mid-December.
But here's a possible twist... If the dollar clearly breaks down to new bear market lows, we could see a mild gold decline. If gold breaks up to new high, however, it could extend the C rise. In that case, the decline since October 3 would've been an aberration. The dollar is currently the wild card and we'll be watching this closely for the next best buying time." |
