Re: Blythe counter attack
in response to
by
posted on
Mar 02, 2011 11:57AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
This is the second day trading after breakout of a 5-month consolidation flag pattern. The Cartel must push it back inside very quickly - today or tomorrow - in order to contain further bullishness ie. the POG must retrace to at least $1412. However in the process of stomping on this run, they might inadvertently create further bullishness if price is pushed back to the topside of the consolidation formation only to see it take off from there. The task will not be a simple one for sure. Even the usual Jobs week shenanigans which we are accustomed to don't always work, and capping Gold will be exceedingly difficult given the backdrop of ME uprisings. As Pic points out, circumstances can trump seasonals or technicals, but it is interesting to note that the Grand Master Sinclair also agrees we are in a period of CYCLIC weakness, which mirrors my own understanding of complex Gold cycles. Also worth noting is Gold trends tend to last a number of trading days equal to a Fib number and so far, the count is 21 days up, meaning time is ripe for a possible turnaround. Conversely, we could trend up another 13 days for a total of 34, or even another 34 for a total of 55. If my model works, a turnaround soon is the most likely outcome however 13 more days up, followed by a sharp retrace to $1395, is another possible scenario, according to the model tea leaves. Ultimately a break of the current up trendline would confirm either of these possible outcomes, but for now the coast is clear.