Remember the Big Picture on Gold (and don't get greedy)

The chart is pretty self explanatory if you know the basics of charting. The blue acceding triangle has its full performance target in blue lettering and the average target in black, as they unusually perform 70% to target. Gold is also in a potential flag pole and the full target is shown as well. Flags are one of the worst performing patterns though, so be cautious if you are aiming for that.

And speaking of not getting greedy, if that flagpole performs most of the way we are going to hit the trendline below, and we run the risk of what was once strong support becoming strong resistance. We are going to have to test and confirm theses EMAs as support along the way and there is a chance that we return to these levels on a retest. Gold set a high in April 06 and then retested it when everything took a dump in 08, and then it exploded. Very likely we run the risk of precious metals taking a dump with everything else as people that bought their gold on credit (margin) have to sell because a recession forces them to sell due to problems spilling over to mainstreet..