So, the cup portion reflects the U-shaped phenomenon that begins in roughly late February and ends with an equivalent peak in early October. From there, the chart begins to decline, but bottoms on November 2, at a point far higher than the low point of the bowl-shaped cup pattern. Obviously, the price of gold is dinkering around again, so it will be important to watch whether it maintains yet a higher low again relative to 11/2. If it does, and I guess that I think it will, the next move would be back up to the horizontal line that I've drawn which captures the previous two peaks of the cup. From there, we would expect it to break through that level and then we're talking about a measured move that takes us to about 200 on the GLD chart, or somewhere comfortably higher than $2,000 per troy ounce.
Let us hope.
