This is a corrective , or at least that's how it looks till now. Corrective double bottoms usually explode, on any longer timeframe. They are perfect levels to enter for the long term. Of course, what looked like a perfect corrective double/tripple bottom in mid 2011 didn't work out, and I mean perfect only by analysing its structure.
There are two ways of looking at the current . If we look from the all time high till now, it looks like the end of a serious downtrend. But if we zoom out a little, we can see a very big uptrend in gold , and this will start looking like the end of a serious correction. Anyway you look, it points to higher prices.
Looking at the oscillators, there is a massive on all three of them, lines, histogram and FI . The FI is getting to a level where previous minor (1-4 weeks) corrections ended (red small rectangles).
Take a loot at the and its moving average. Compare the levels of the first leg of the with the levels of the second leg. The difference is very visible. There was little selling during the second leg. The main selling was done during the first. Unfortunately, at the second bounce off 1180$, the is not stronger than usual, as it says in the books.
Now compare the two patterns drawn, the first double then tripple bottom with the current . Look at the difference in divergences. The small divergences seen in 2012 did push the price higher, but not enough for a rally. The current divergences look very strong and IMO are likely to push the price of Gold near the all time high.
As long as price stays in the arc drawn, that means above 1180$, I remain extra on Gold . Allthough the daily pattern shows a perfect entry point (I will draw a chart after I finish this one) the market can act weird and whipsaw traders, so I give some space for wiggles.
The targets are very far away, and there is no way to tell where this chart is going. The imediate is at 1400$, but if I am right about this, Gold should not hesitate there. If there will be strong hesitation there, it won't necessarily mean that I was wrong on the long term, but more downside should be expected and the long position should be liquidated until a clearer view comes up. Next important level is at 1534$, and there we should see a pullback, as it is a very strong . The target is at 1700$, but these targets, either it be targets, targets and so on, they are all just indicative, and should always be taken into consideration with the closest or resistance. In this case, we have the psychological factor at 1700$, and even better, a at 1800$ with the psychological factor included. I realise the difference is a bit big, 100$, but keep in mind that this is the weekly, and 100$ moves during a week have been seen before.
I will manage this trade with daily entries, and I will keep my long position until the weekly screams at me to sell.
I have said it twice, and I will say it again; as long as we stay over 1180$!!!! I am a bull on Gold . There is no weekly confirmation yet, but the daily looks very good.