The “Power of the Pattern” suggested the morning of the 2011 highs to harvest long gold positions and go short if aggressive, a couple of hours before the high. (see post here)
The “Power of the Pattern” called for this high to take place, when gold was at $1,641 per ounce (see post here)
Since the 8/23 highs, Gold is down around $300 per ounce…Could Gold fall another $500 from here? See below…
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Support is support for sure and Gold is testing line (2) right now, which has been in place since 2009. Gold inflows recently were hitting all-time highs and now Bloomberg is reporting that investors are starting to sell gold positions (see article here) If interested in keeping track of Gold flows (see here)
Will Gold fall another $500 per ounce? Support has to break at (3) first!!! Should the inflows turn into outflows and support gives way, the lower gray line becomes the next mult-year support level, which is way down there and would be a big fall for Gold!
Many doubted that Gold should be sold/hedged or shorted at $1,900 and I fully understand why many will doubt that Gold could fall another $500 per ounce too! Support may not break, yet if it does, I would not want to be long and do nothing!