a very beautiful thing...

MoneyLA

the five year gold chart.

Mesquite

I agree. It is a beautiful thing.

mhammerman

It IS a beautiful thing.

CaptHenway

"Everything is beautiful..........in it's own way!!!'

Ray Stevens

renman95

True, very true. How about a ten year chart with five years including the future. That's a beautiful thing too.

roadrunner

So if the 5 and 10 yr charts are such beautiful things, why do the 30 and 50 year gold charts get brought up more often to "prove" what a bad investment gold has been in ANY time period?

But I go agree.....that's a beautiful chart. A bit craggy looking....but beautiful nontheless.

roadrunner

braddick

Well... for those of us who just got into gold seriously over the last few weeks. . .

cohodk

<< <i>the five year gold chart. >>




People said the same about the Nasdaq chart in 1999. Just saying.....

guitarwes

please 'splain to a rookie why you like the 5-year gold chart in 100 words or less.

MoneyLA

the five year gold chart:

From Dec 2004 to early 2008 it shows a strong upward trend line (yes with some selling, but a strong upward trendline). This trendline hit at 1000.

Then came some selling and what we call a "reverse head and shoulders pattern." in this reverse head and shoulders pattern, the price of gold dippled back to about 700, or a 300 point move down.

when the head and shoulders pattern finished back at 1000, there was a break out north of 1000.

my interpretation of the reverse head and shoulders and the break out calls for 1300 gold. which is 1000 plus the 300 point correction of the reverse head and shoulders.

actually this is a "classic" chart. simple. almost a textbook illustration of a rising market that had a correction, a reversal, and a new leg up.

if you were to author a textbook on technical analysis, you would use this chart.

roadrunner

People said the same about the Nasdaq chart in 1999. Just saying.....

Yes, after a bull run that begin in the later 1970's the Nasdaq composite increased 50X by it's 1999 peak. When gold hits $12,750 (>10,000) I will be the first to admit it's mania bubble time. But so far we have a factor of 4X. That would have gotten the Naz to 1986....about 8 years with 13 to go (38% of the way). Curiously, gold is also about 8 years in. The Nasdaq chart is so immense that you can't even plot it on anything but a log graph. Gold has no such problem.

Of course a text book explaining head and shoulders formations would also note that the majority of them fail. A cup and handle formation can also be applied to the 5 yr, 10 yr, and 30 yr charts. That's even more beautiful. The Nasdaq never saw such a formation...it just increased in log/ponzi fashion over 20 years.

roadrunner

mhammerman

Nice, tidy explanations MLA and RR. I like the way the curve of the 5 yr 200 sma only shows one dip but it was from earlier this year and it's just now catching up to the ma. It is a nice curve, I'd hit it...oh, wait, I already did.

Darin

<< <i>I agree. It is a beautiful thing. >>

MoneyLA

I really havent paid much attention to the ten year chart until this thread made me take a look. generally I think ten year charts are too "long term" to provide clues to current trading. but I do admit that the ten year chart also shows strong, long term growth for gold.

the danger sign is when gold rises too fast without correction, or without periods of treading water.

that treading water or consolidation phase is as valuable as minor corrections and helps to release some steam and to bring in new money.

DimeAdozen

That's a nice thing