Gold and Silver Weekly Charts: Currency Wars Continue and then Intensify
Since the rather sharp breakout from the cup and handle formation, gold has assumed what appears to be a steady, sustainable trend.
Yes there will be rallies and corrections. It appears that gold will be bumping into the upper end of its trend channel between 1455 and 1480 in the beginning of 2011.
If it maintains the current tight channel, which I think it will do unless there is a panic liquidation, 1390 *should* hold.
A more serious sell off could test 1250.
Will those waiting for a chance to get back into the gold bull market buy into position if it drops to 1390? Or even 1250?
If they did not buy into the worst correction down to 700-50 on this chart then they will probably not. Once you lose your position in a bull market it is very difficult to swallow your pride and climb back on board. One tends to keep waiting for THE low.
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