“If the dollar cycle has topped on week three like I think it has, then gold should deliver an extremely powerful rally over the next 4-5 months. If the dollar tests the 2011 lows during this yearly cycle bottom I think it’s completely reasonable to expect gold to test the all-time highs at 1900.  A 700 point move over the next four or five months would certainly reset sentiment and set the stage for gold to move into the bubble phase of the bull market as the currency crisis in the dollar begins to develop next year.
I continue to believe that this entire correction is going to turn out to be the corrective move that separates the second phase of the bull market from the bubble phase.”

 

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From Tekoa da Silva, Bull Market Thinking:

Following an explosive rebound in the price of gold this week, recent interview guest and technical trader Gary Savage, shared some powerful commentary Thursday evening to subscribers.

Speaking to the last four days of gold’s price rise, Gary noted that:

“With today’s positive close, gold has now completed a four-day rule potential trend change. That is also coupled with a four-day corollary that occurred on the June 28th key reversal.

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All in all, gold appears to be in the process of reversing the coil pattern that we have been watching over the last two months on the weekly charts.

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If the dollar cycle has topped on week three like I think it has, then gold should deliver an extremely powerful rally over the next 4-5 months. If the dollar tests the 2011 lows during this yearly cycle bottom I think it’s completely reasonable to expect gold to test the all-time highs at 1900. A 700 point move over the next four or five months would certainly reset sentiment and set the stage for gold to move into the bubble phase of the bull market as the currency crisis in the dollar begins to develop next year.

I continue to believe that this entire correction is going to turn out to be the corrective move that separates the second phase of the bull market from the bubble phase.

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