Tuesday, September 28, 2010

Charting New Space

By Warren Bevan:

Resistance is futile. Gold is charting into new frontiers. We're now on the road towards $1,500 Gold and $30 silver. Both targets should be reached with this move which should last until perhaps spring.

There will be consolidations and corrections along the way, but it really doesn't get much better than this. Let's get right into the fantastic looking charts this week.

Metals Review

Gold rose nicely, by 1.73% on the week and butted up against the psychological resistance at $1,300 early Friday before falling due to profit taking the rest of the day.

The $1,300 level may take a bit of time to clear, but then again maybe not. When something is in all-time high territory there is no telling what can happen and when. What I can say is that I'm very, very impressed with Golds move so far.

It's moved up slowly and steadily, backing and filling and testing and holding support levels along the way. It's textbook, and very pleasing to see.

If anyone tells you this is a bubble or parabolic blowoff their crazy! This is a sustainable move. Many stocks I was trading last week moved up well above 3% in a single day while Gold was up under 2% on the whole week.

The GLD ETF saw good fairly strong volume on the week with very strong showings a couple of days. All in all the volume tells me we should continue to move slowly, steadily higher.

Silver rose a strong 3.42% for the week and it is right at bull to date highs dating back to March 2008. To find a silver price any higher you'd have to go all the way back to the 1980 era.

If silver moves up even a few cents it could spark the move to $30. It could happen quite quickly. Silver has certainly moved up rather quickly but who's to argue with it?

All you can do now is enjoy the ride until it ends......read on

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