In the precious metals market, Gold broke above the $1200 an ounce recently and it looks like $1300 could be the next likely target. I wrote a post back in November, 2009 on gold moving to $1300 an ounce, and a follow up post a month later. The possible catalyst I thought that will cause the price of gold to move above $1200 at the time of those writings turned out not to be the case. Instead, the catalyst turns out to be the financial crisis with the PIIGS. One thing is clear, the chart provides you with clues on what possible price level to expect in the future, but it doesn’t tell you when that price level will be reached or what will trigger the price to move toward the target level. That is why it is important to have trade setups and triggers.
Until the market has settled down, I will focus on trading cautiously with my high percentage setups only.
Click on this link to see the chart that projected the price of gold reaching $1300 an ounce, and click on the chart below to view the latest chart for the gold ETF, GLD.
GLD:
