I discovered a few interesting Facts:
1) This Gold market Bull rally began with a final low in August 1999, at a paltry price of $251.70.
2) If a wise investor with great foresight bought gold at the August lows in every odd numbered year since 1999, that investor would have never seen any of those investments back track one penny.
3) Everyone of those August lows in an odd year have seen impulsive runs into new all time highs inside just a few months thereafter.
Now that is pretty interesting in and of itself. Especially since this August 2011 is another odd August.
But that wasn't enough for me, I had to mess with the numbers. Taking the price levels of every low in August in an odd year and making a few simple calculations created an amazing sequence! leaving us with a projection into 2012.
Here is what it looks like:
Some of these calcs were off by as much as 8.5% and some were within 1%.
Heck, If I could target a trade within 10% of a significant top or bottom I'd be happy.
Significant tops have been placed in May '06, March '08, May '11. Alternating months, will March be the next topping month? The August low in 1979 also launched more impulsive moves toward the 1980 final high posted in January. Perhaps today's market is gearing for a major run toward the Winter quarter 2012, erupting from lows this August?
Projecting forward, continuing the calculated logic of this pattern, it's easy to see that a Gold price near 2362 is entirely possible by March 2012. This would certainly keep with the parabolic movement that has been established since 1999. This also meets up with other work that I have done with Elliot Waves and cycles that also suggest a turn this August and a top in 2012 within the 2050 to 2450 range.
Here is another set of charts using a set of Fibonacci measurements in time:
All 4 point to this coming August, particularly the week of the 14th, as a highly likely point for a significant turn......in an odd year....2011.
This leads me to a couple of questions:
1) Will this August produce another low just before an impulsive run back into all time highs?
2) Will March 2012 see prices around 2362?
3) Is there a God in Heaven that likes Gold?
I think the answer to #1 and #2 is: Most likely
My Answer for #3 is: undoubtedly!
The universe appears for many to be chaotic, random, accidental and without purpose. However studies like the one I have presented may suggest that perhaps, if one digs a little under the surface, an intelligent design, a finger-print of God, can found.
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