Stock Charts -
Looking over these two charts, and Gold . I like to predict patterns before they happen, and I see two patterns shaping up with Gold and . is developing a classic pattern and Gold a .
For , we will see confirmation of a only if the .382 support is met and held. For major market double tops, you measure supports with the previous bottom support ($49) breakout with the recent top ($1239). .382 Fibonacci level is usually the key area to find a support after the completion of the third wave of pattern. Combining with pattern idea, this would suggest a fifth wave failure for . Double Tops can have +/-3% differential from previous top. I also measured .382 level with the top to get a $452 difference. You can calculate the final outcome (Target 4) by subtracting the measured move (-$452) from .382 , and you get ~ $310.
Gold Take -
As for Gold , we have the exact opposite happening. Gold is forming a , and is ready for the next breakout. Political events have been known to have a major factor in price moves. IMO this debt ceiling debate will be hard fought which will cause unstability in the equity market, which benefits the metals. Also, we have a dovish that wants to continue the $85 billion monthly bond purchases until mid-2014 and maybe through 2015. Combining unstability in US Government and a lacks will push Gold to my fourth target of $1700 XAU/USD .
Deadline for US Debt Limit is early March according to US Treasury Secretary Lew
Here is a news brief on the next U.S. Government debt debate...
It was just last month that U.S. lawmakers brokered a deal suspending the debt ceiling through February 7 to end the government shutdown, and the Treasury Department could continue borrowing. After February 7, Treasury will still be able to use the "extraordinary measures" to stave off default.
With the current national debt at an unprecedented $17.1 trillion (One analyst thinks it could double to $34 trillion), any reasonably intelligent person would wonder how long this kicking-the-can band-aid will last. Both the Bipartisan Policy Center and Treasury Secretary Jacob J. Lew have estimated that the extraordinary measures would run out in a month or so, i.e. by March, 2014.
Now according to a report issued today by the Congressional Budget Office (CBO), U.S. may be able to push the debt ceiling deadline to as late as June because the income tax receipts around the April 15 tax deadline may provide more cash cushion to meet scheduled obligations.