Technical Speculator: The Gold Sector Starts a New 13-Week Cycle

Source:

With a new 13-week trading cycle developing in the first half of April, a price peak can be anticipated mid-point (second half of May) at a level of near $720.

From the correction low in early October 2006, gold has shown increasing technical strength as each new 13-week trading cycle unfolds and lifts the metal higher. This sequence of improving prices gives a good indication of expanding strength and also helps forecast the movement of this precious metal over the next few months. With a new 13-week trading cycle developing in the first half of April, a price peak can be anticipated mid-point (second half of May) at a level of near $720. The next trough should form in late June.

Though the global fundamental supply /demand balance continues to favour the latter for gold,an increasingly frail U.S. dollar clearly helps encourage support.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe