In the UK we have had an ad on our screens in the past for something called Ronseal. Their motto: ‘It does what it says on the tin.’ That is what this post is all about.

 

I have seen numerous posts this week, Gold has broken out away we go. Yes, I agree however Silver looks so much stronger and to me I agree with Graddhy, It looks like it has broken out.

 

Gold however, I have to concur with Fully on this, It is right at the YC downtrend-line. Surf City’s recent post depicts Gold as having broken out, but it is dependent on ‘How you draw it’

 

Thats the beauty of charts and trendlines and why so many are like ‘Pfft’ they dont work. Yes they do! Rambus always says about a trendline (to paraphase) how price interacts with it is key. How price opens on Tuesday is Key. If we do indeed Gap up on the open I expect a Huge spike up with Shorts being burnt. Stops will surely be above that line? If we do get a Gap up above, It will show me the trendline is indeed correctly placed here and it is hot. I don’t expect Bears to die without a fight.

 

Note: We are late in the IMC and the forum has gotten very bullish recently. We could zoom off and never look back, I for one would be extremely happy with that. We must remember the August top and the September sell off. Be aware, be clever and don’t be fooled by Mr Market, that sneaky rascal.

 

For reference here is an update to my diamond that Fully so nicely put up a while ago now.

Notice how we are right at that descending trendline. Decision time 2017. (I know…not even an election year!)

http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=6&mn=0&dy=0&id=p58793685233&listNum=1&a=516206533