Wednesday, January 28, 2009

Gold long term chart

Ever since gold's break of the intermediate down trend I've been wondering if we didn't see the long term bottom a little earlier than expected. Of course there is no way to tell at this point but I wanted to point out the size of the consolidation that we are talking about here.

I've pointed out in the past that the size of the consolidation is often a clue as to how large the rally will be once an asset breaks out of the consolidation.

I'll have more in tonight's update.