GOLD bugs are jumping for joy at the thought of a major up move from here based on a world wide economic collapse. However, so far what we see is nothing more then typical market action, 5 bull up wave, ending with a parabolic move.
Our first projected target of 115 was derived by taking the pull back ratio of the inverted head n shoulders pattern and adding that amount to the break-out neck line.
Our ending price target area of 125-130 is obtained by adding the pull back points of the 4th wave to the break-out area of the 5th wave.
The GLD has moved in the 90-99 up, 180-189 2nd move up, and now will end with another 90-99 up.
This last 90-99 time frame will conclude begining the week of May 19th thru 31st, to complete the up cycle. Once we get a few days of distribution to confirm the pattern, we will begin shorting GLD via the DGZ.
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