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The multipoint trendline resistance that I have touched on in the recent posts on the blog has indeed been "concrete". Gold has also been making higher highs at the same time, and the pattern is pinching to a point where one side of supply or demand is likely to run the other over. There is no way to predict which way it goes. I only care about positioning myself on the winning side, or with the strong hands of the current "Open Interest" once gold enters the next phase of "vertical development".
The picture of the daily chart, right hand side below, is one of "extreme tension". Any swing/position trade, long or short, being placed inside this pattern is guessing on future direction in my opinion.
It doesn't matter to me what gold is valued at, I can let the experts debate it, and explain things later. Value is subjective and based on opinion. The only real "truth" in trading is the current price and volume.
(Click on charts to expand)
One last chart to keep an eye on in the metals sector is Copper. There is a potential Bearish "Head and Shoulders" pattern developing on the daily chart. See right hand side below.
My most recent post on gold can be found here: http://scottpluschau.blogspot.com/2012/07/gold-once-again-approaching-major.html
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Source: Gold is coming to a fork in the road...
