Gold is currently trading near a critical level, from where a massive move up or down is imminent. One of the measures that illustrate we are a close to a big move, is the following resistance line on the gold chart…
Written by Hubert Moolman
Below, is a gold chart (from) with the resistance line indicated:
The red line is the critical obstacle that the gold price has to overcome, for the continuation of the gold bull market.
- Since price has now failed more than four times at the line, there is a great chance that we could see a big drop.
- If the price is to turn around and break through the resistance line, then a great amount of energy is required to fuel such a move – and that can only come from a collapse of a big market like the general stock market, or the bond market.
In my view,
- it is clear that the next major gold and silver rally will be driven by a stock market collapse.
- When gold breaks through the resistance line, we will see a gold rally like that of 1979/1980.
- In fact, there is a peculiar fractal that suggests the current situation for gold is very similar to that of May 1979, just before the massive rise in gold – see the following long-term gold chart (which is self-explanatory):
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