Cup with Handle in Gold?!

There's a pattern developing in the gold market. Some say gold is due for a move toward $2,000. Many will disagree. Frankly, I agree with both view until a clear pattern prove itself. One strong pattern I noticed is the "cup with handle" pattern in the price of gold. Basically, the move of gold up to $1,000 back in March 2008, retraced down to $700 in October 2008, and moved back up to $1,000 in February 2009. This one year movement in price formed the cup portion of the chart. Gold then retraced down to $875 as we speak. If gold can hold and make the move for $1,000 once again, a break above that will be very bullish according to the cup with handle thesis! (for more on this click here)

I can't say much except that if gold break $1,000, it will be tempting to jump in for a trade NOT invest.

Please see the accompany chart below for a full picture.


Art

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