http://www.321gold.com/editorials/thomson_s/thomson_s_103012.html
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The United States presidential election is just a week away. Markets can become range-bound at such times, because institutions are reluctant to commit themselves until they know the outcome of the election.
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An extra dose of patience is required at such times, both by investors and technical analysts. Chart patterns can be distorted. In turn, that makes predicting market prices more difficult than usual.
- Please click here now. You are looking at the seasonal chart for the spot gold price. Please make note of the fact that gold tends to bottom around the 3rd week in October.
- At the end of the month (now), spot gold seasonally tests those lows, and then begins to rise.
5. Please click here now. This is the seasonal chart for the gold futures price. It tends to make a significant low about now, and then makes a final low on approximately November 14.
- If you take an average reading of the two seasonal patterns, gold should be making an important bottom right about now.
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The technical action on the price charts of both gold and silver supports this thesis. Please click here now. This is the daily gold chart. Note the action of my key 14,7,7 Stochastics indicator.
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It seems to be suggesting that gold is poised to move higher on “seasonal schedule”.
- I consider a move over $1800 to be the most technically significant event in the history of the gold bull market.
- A move towards $1900 would turn $1800 into what I term a “platform of excellence”. I’ve highlighted the 3 times that gold has risen to $1800 and backed off.
