Our strong gold timing outlook has been confirmed by other technical methods, which makes it stronger, reports Jeff Greenblatt.
The precious metals sector turned up on a really good calculation. The complex stalled on Wednesday, but conditions are as ripe as they’ve been in years for a major breakthrough.
This breakout was identified last week by our Kairos methodology as the pullback was 13.4 points down against a slash line (retracement and inverse ratio) of 74% and 1.35. Precious metals are finally telling us the economy is dealing with bigger structural issues (see chart).
Interestingly, other analysts, with different methodologies, has also come to the same conclusion. Suri Duddella has pointed out that gold futures are in the midst of a symmetric triangle, which is suggesting that there will be a breakout/breakdown soon. This analysis does not pick a side, just highlights a continuation pattern that at some point must be resolved. As the pattern narrows, it must seek relief, in either direction.
Also, John Rawlins’ QuantCycles Oscillator had successfully predicted the recent breakout in gold. He followed that up this week with current analysis that expects gold to continue its run higher. This jives well with our current analysis.
Finally, today’s post is not a very short-term view although conditions could materialize sooner as opposed to later. However, it will be very difficult for the market to overcome this trifecta of events at the same time. History is not all we hoped for back in the good old days.
While we promote our own technical work and only stand by it, we acknowledge that other analysts have valid methods. So when other analysis comes to the same conclusion as us, using different methods, it tends to strengthen the overall outlook.
