Gold: These Old Charts Provide New Insights
Price patterns of major financial markets repeat at all degrees of trend
by Bob Stokes
Updated: November 19, 2019
Oftentimes, it pays to review the financial history of a given market to gain insights into the present, and possibly the future.
You see, chart patterns repeat themselves at all degrees of trend. So, if the price pattern of a given market unfolded in a certain way in the past, it may very well do so again. It doesn't matter whether that chart pattern developed five months ago, five years ago, five decades ago or even further back in time.
With that said, let's look at a couple of gold charts that our Elliott Wave Theorist showed nearly 40 years ago, and review what the Theorist said about those charts. Here's the first chart from Sept. 9, 1980:
Gold has entered wave c of it's a-b-c bear market rally and should meet the minimum Elliott target of $710 within days.
Well, just 13 days later, the a.m. London fix was $720 and the p.m. fix was $710.
The Oct. 3, 1980 Theorist showed this chart and said:
Using another possible orthodox low at $495 on April 21, I find that wave c is .618 times as long as wave a, helping confirm the top at $720.
Indeed, after hitting $720, gold went into a downtrend that stretched for more than 20 years. Of course, as you probably know, gold began a multi-year rally thereafter.
Getting back to those two historical gold charts: The reason for showing them is that they have relevance to the current picture in gold.
Now, bear in mind, chart patterns do not always repeat exactly, but even when they are simply similar, past chart patterns can be highly instructive. And, our analysts do find similarities.
Yet, there is one main difference between gold's Elliott wave pattern in 1980 vs. the current picture.
The just-published November Elliott Wave Theorist informs you of that big difference, and let's you know exactly what it means. It's a very important message.
Plus, the new Theorist also shows you more gold charts, including one titled "A Century of Gold Prices Tracing Out Textbook Elliott Waves."
If you have even a slight interest in gold, the November Theorist is a "must read."
Look below to get started with your risk-free review.
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