|
May 4/07
- You can see from the chart below, that the current move to
$700-plus Gold is very, very different this year when compared to last year...
I've colored-in Gold's movements above $600 per oz. in "Green" so
the patterns are easier to see...
Click image to
enlarge...
Some important trends to see in the Gold chart
are;
#1.)
In last years lead-up to $700 Gold, there were only 16 trading
days in the $600-plus per oz. range before Gold moved into the
$700's... this happened after the Gold price spent years in lower trading
ranges. A time-frame of only 16 days is a very, very limited or small
period,
meaning that many of the new Gold buyers during that 16 day
period would have included a disproportionately high number of
"Traders" and "Speculators", and a disproportionately
low number of
longer-term "Investors"... "Traders" are extremely vulnerable to
manipulation, and "Speculators" a little less so, both of whom buy-sell on small directional moves,
so when you get a disproportionately high concentration of "Traders"
and/or "Speculators" in a stock or
commodity, they make that asset class very vulnerable to sharp sell-off's
and/or manipulation.
#2.)
In the current lead-up to $700, there have already been approx.
216
trading days in the $600-plus range over the past year (that
even excludes the additional time spent consolidation between
$550 - $600 range following the initial run to $700-plus)... this base building period in the $600-plus
range this is a much, much longer period than the very short 16
day time-frame of last year. The lengthy Gold price
consolidation period over the past year has been long enough to
allow a significant number of longer-term investors from around
the globe to comfortably enter the Gold market as compared to
the very, very quick run-up to $700 one year ago. The Gold price
chart is currently forming a pattern of "higher lows", which is
a technical chart pattern often used by market-technicians to
associate and/or confirm circumstances reflecting longer-term
"investors" entering a market (or a stock) in increasing
numbers, and where new "investors" continue to enter the
market willing to pay incrementally higher prices over time.
NOTE: You can research the
historical Gold chart numbers
yourself at
kitco.com's historical Gold charts/data section. |
