I have applied the Gartley construct ( see previous blog posts…) to the Gold chart ( basis April ’13 Futures chart from barchart.com) using the $1800 highs as a start point for the parallelogram placements.
Note how the green colored parallelogram produces point D at the $1640 lows in Dec 2012. Notice how the red parallogram is portending point D to be at $1580 or so. Once this price level is hit, we should then be able to buy Gold for a trading rally.
Point D is very close to arriving…..then again so are the sequestration cuts in America and so is re-newed banter about the debt levels and maybe even credit ratings.
The point is, all these things move in harmony as the world eveolves and price simply moves in harmony right along with these events. Despite all the TV talking heads and all the analysts with bullshit opinions and all the fancy “quant” models, the markets today continue to evolve as they did for Gartley and Gann in the 1930’s. There were no computer models back then and no CNBC either. These men simply had a ticker tape and a slide rule. The parallelogram construct that worked then, still works today. Too bad we have lost sight of it all…..