Earlier this year I finally uncovered several new trading patterns in Gold & applied them to my model. As this current cycle comes to a close, the model suggests an opportunity for a short sharp correction, which Frank Barbera seems to be predicting as well. I also note the chart recently posted at JSMineset that seems to suggest the same short-term pullback is in the cards. My model does not predict what the bottom price of Gold will be but it does call for Gold to fall below $847/oz. I hope the model is correct because it also suggests that Gold will keep trending up for another 3 months starting as early as next week.

=======================

ESL - UPDATE

Pic - you give an interesting potential price objective of $850 that is close to my minimum $847 target as well. Unlike the Stalker, I think renewed market turmoil will briefly push Gold below the 50 Day MA. Time objective is not part of my model but Fib displacements are usually a good guide in which case we have 8 more days to go before hitting bottom. Besides that, I will use the Gold IBD clone (Jim Sinclair's) to determine a re-entry point as that tends to be a very accurate buy/sell indicator. Today this indicator remains overbought which supports the notion that the bottom is at least 8 days away. After the correction is over and with all due respect to your temporary fogscreen, my model clearly shows an opportunity for a lot of upside potential over the next 3 months - not unlike my earlier prediction made back in November 2008 for a nice run beginning Jan 09 2009. By the way, the price objective for the next upleg is as much as $1300 ie. $847 makes a picture-perfect right-hand shoulder of a massive reverse H&S pattern. Happy trading!