Monday, September 11, 2006

Broken Triangle



Gold did break the flat side of the triangle and the follow through was pretty strong, as it usually is in these kind of technical setups. I sliced the bigger triangle (which was an imperfect one since it had been quickly broken once) into a smaller one which better reveals the technical setup.
Now it remains to be seen which of the supports will hold this correction (it is a correction, right?:)). So far, most of the markets seem to trend short term within their respective correlations..the commodities are falling (silver, copper, oil, natural gas etc.) and the dollar is strengthening. I believe this is just a corrective movement in the markets before returning to the weak dollar and strong gold theme. But the markets are always right and my belief may be wrong:))

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