Today, gold stocks continued higher, after taking a breather over the last two days. At the same time, Gold Bullion also continued its ascent, adding on another 9 dollars.
I don't normally show Point and Figure charts, but I will in this post since there have been some interesting developments in these charts in last few days. Like all my other charts, these charts are from StockCharts.com.
If you'd like to find out more about this charting method, I would recommend reading this book. Anyway, the following chart is of Gold Bullion. It goes back to about February 2007, and it has a 3 box reversal. The main point of interest in this chart is the quadruple top that gold has just broken through, which is a very bullish pattern.
Because gold tends to move in the same direction as the Euro, the Euro's point and figure chart is currently exhibiting a similar development. However, as shown below, it has not yet broken through the overhead level of resistance. Once the Euro busts through this level, it will likely add more fuel to the fire for gold and gold stocks:
If you find these type of charts useful, then you may also enjoy this blog. And on the topic of currencies, the USD has, at long last, broken the 80 level. At this point this has not led to a spectacular washout in the currency, but I feel that it easily could.
Although it's impossible to tell for sure, there could could be a large number of stops, holding billions of dollars, sitting just below current levels. Thanks for stopping by.