Gold Quarterly

The yearly chart of the world gold index is bullish with a possible TD Sell Setup scheduled for the end of 2010. How does the quarterly chart fit into this scenario?

The rally is to the point where we are well along in TD Sequential countdown. This quarter’s price bar will be bar #9. Since it takes 13 bars to complete, the earliest we can see a sequential sell is in four quarters from now - and this matches what the yearly chart is telling us. In the third quarter of 2009 the market broke out above the TD Supply line and confirmed that break this quarter. The calculated price projection is 1318.21. This is higher than the targets mentioned yesterday and is closer to a TD Trend Factor target of 1346.98. 1321 is square the low of 1999 and so 1318-1347 is a target area to watch on the way up.

Bottom line: Both the yearly and quarterly charts are bullish. Tomorrow I will take a look at this market’s monthly chart.

Technical Analysis of Chart positions for longer-term positions:

Dollar Index: Out. (0.65 point loss after 1 trade). If able to punch through 76.8-77.05 this will signal continued bullishness.
World Gold Index: Out since 1161.80 on the close of 12/4. Watching 1101.20 to see if support develops.
Cash SP500: Out on a close below 1083.74.

Waiting for initial signals on the following charts: 10 yr Bond Yield and the CRB Index.