Wednesday, January 2, 2008

Gold's breakout

Well, it's finally happened. Gold has broken its numerical historical high of $850/oz. Teeka wrote an article about it for the Tycoon Report called 'It's time to buy gold' that they just reused because its a good time to stress its points again. Be sure to check it out. Anyways, by the chart below you can see the symmetrical triangles I drew. The first taking six months and the latest taking only a few which broke its trendline resistance last week and now has broken it's price level resistance. By this pattern you can create a price target of about $940. I'm not investing in the metal, but I do have some positions in near-production, early production mining companies. They're just starting to create their revenues right now which should be reflected on their earnings reports throughout this year and onward. Just wanted to point the opportunity out.

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