Tuesday, 11 February 2014

Double bottom or lower low to come?

Our mathematical model has three different scenarios for the future price of Gold.
For projection C to be realistic Gold must close the month of February 2014 in the region of $1240 this would validate the double bottom many favour.

A close below $1200 brings A and B in to play, currently we favour A and B as the more realistic scenarios with B being the scenario that most fits the current cyclical bear.

All our mathematical modelling suggests that when we run our most bearish scenario - projection A we still get a June 2014 low circa $925 followed by a 50% rally the following 18 months.

Please review our previous posts from March April 2013 to see which way we placed our bets prior to the big declines. Our maths allowed to go short at the most opportune time. 

  

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