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55 Gold Fever
55 Gold Fever
55 Gold Fever
indicates resistance is forming and price needs a rest. There are three key
peaks in the Accumulation that are magnets for a SOS followed by a
Backing Up action (more on this later).
Labeled on the PnF chart are the essential points from the vertical chart.
We always take our horizontal PnF counts from the analysis of the vertical
chart. Is there enough fuel in the tank (pent up Accumulation) to make a
campaign in GLD worthwhile? We always count from right to left and the
LPS will be our anchor on the right side to begin counting. Three segments
are counted, two Secondary Tests (ST) and the SCLX. Each of these counts
is flagged on the PnF chart. The count could become bigger if GLD rises to
the Resistance area and forms additional LPS and Backup levels as these
can and would be counted.
The first segment (smallest count) takes GLD to the Resistance area at 141
/ 155 which would produce a Major Sign of Strength and complete the
Accumulation. The next segment counts to an exact double of the 102 low.
There is substantial fuel in the tank to propel GLD higher. The segment
from the LPS to the SCLX targets a price of 252 / 266.
Horizontal PnF counting is a powerful tool as it offers a method for
estimating the extent of a price movement. But it cannot reveal the time it
will, take or the path. The Art of the Campaign is a major subject for
future consideration. Here is an article co-authored by Dr. Pruden, Prof.
Bogomazov and your blogger on another campaign that could illuminate
how to proceed with GLD (click here for a link).
Take a moment to study and compare the above schematic to our GLD
chart. Typically markets do not move in a straight line. At times markets
are in hurry, and then they languish. Wyckoffians learn to let the markets
lead the way. This schematic provides a potential roadmap for how prices
emerge from Accumulation. It could help us to understand how GLD will
stair step its way into an uptrend. There is Resistance at the upper bounds
of the Accumulation that must be worked through. This will create pauses