hi FA , i got this at kitco.
Do you own Gold? It's time to take profits
By Jes Black
TradingMarkets.com
October 12, 2005 2:00 PM ET
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Last week we wrote, “Considering that gold is rallying in a final “wave 5” this week, a peak in gold prices would coincide perfectly with the beginning of a “wave 3” rally in the US dollar index.”
Readers will recall that we gave two target levels for the breakout in gold. The first was $480 and the second was for $490-$500.
Spot gold reached our first target which was the measured move of the base of the triangle from last year’s high at $457 to this year’s low of $410. The measured move of $47 from the breakout level at $433 gives a target of $480.
Today’s bearish daily reversal off of a very obvious target means that gold should now target the equally obvious support level at $460 where traders who remain bullish should look to re-establish longs.
However, we must note that breakout has followed what appears to be a very clear “five wave” move. If so, then a deeper retracement back to the apex of the triangle formation at $422 is expected.
So, traders have a very clear price target and objective. One could sell spot gold today at $475 with risk above $480 or look to buy at $457 with stops just below here.
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