This is the text version of a recent video I posted on YouTube at: http://youtu.be/wM1JHs76W6Y
In October 2012, the December ’13 Gold futures contract hit an intra-day high of just over $1800/oz. Closing price was $1777.
Using $1777 as a starting point, numerous square root iterations can be calculated as per the Square of Nine.
One possible support level that emerges from the calculations is $1218. In fact, in late June 2013 this Dec ’13 Gold contract had a close of $1213/oz.
Next, using $1213 as a start point, square root math shows that $1412 is a possible resistance level. In late August we can see that this contract found resistance at $1413 and turned lower from there.
Using $1413 as a start point, square root math now suggests $1302 and $1284 are possible levels of support.
Astrology adds another layer to this story. The embedded price chart herein shows a series of purple arrows and some yellow boxes. The purple arrows are Sun-Pluto hard aspects. Note how these aspects align reasonable well to swing points in Gold price. The yellow boxes are those times when Mercury is retrograde. Note that during these events, Gold price tends to exhibit a small, counter-trend rally.
If you are a Gold trader, or even of you trade Gold mining stocks and are looking for Gold to regain its positive “mojo”, take note that late September-first week of October will deliver a Sun-Pluto hard aspect. Pluto will be at 9 degrees of Capricorn and Sun will transit through the early stages of Libra for a 90 degree hard aspect.
Also note that Mercury will go retrograde again on October 21st.
Knowing that these events are pending, you can use your technical chart analysis and begin watching for the chart technicals to create a buy signal. The Sun-Pluto hard aspect may then provide you with some solid confirmation of any buy signal that develops…