I was watching David Linton's 'charts of the week' posting today (he was using mainly P&F and cloud charts) and he referred to some 'spectacular' long term price targets given by the P&F chart. I was naturally keen to investigate.It can be seen that all those activated upside targets from 2009 have been respected, as gold moved up towards 1,400. I have circled in red three occasions where sell signals were given, only for the price to reverse higher and give new targets to the upside.
At present, another sell signal has just been activated, with a target in place of 1,270. So we are at an interesting juncture. The longer term picture remains bullish and if the gold price was to push to a new high (ie filling the 1,430 box), those higher targets will remain firmly in play. The fact that we have what appears to be a double top at 1,420 makes this quite an interesting battleground for bulls and bears. There is clearly a struggle going on in the 1,340 to 1,420 range.
A further review will be required if that 1,270 target is reached then reverses.
