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Patrick MontesDeOca
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Published Technical Analyst, Author, Commodity Trader, Systems Developer, Algorithmic Intelligence, Computer Modeling of Processes. I custom build Proprietary Artificial Intelligence for each individual client's portfolio needs. After more 30 years in the business, Patrick MontesDeOca has... More
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Vedic Codes of the Stock Market Volume 3 – ETFS
  • GOLD FORECAST IS $2700 FOR 2013 AND MORE BEYOND 0 comments
    Jan 13, 2013 4:26 PM | about stocks: AGQ, AG, SLV, GLD, PSLV

    GOLD FORECAST FOR 2013 AND BEYOND

    On this special report I spoke at length with Steve Roy with the Equity Management Academy, where the focus is MANAGING WEALTH, through education. Here is his forecast for where Gold may be heading in 2013. Roy's analysis uses Fibonacci, Gann, Wave analysis (not necessarily Elliott), Moving Averages, as well as Proprietary techniques.

    Click here to see charts and VIDEO

    Gold hit its all-time high in September of 2011 at $1923.70, as seen using the monthly continuation chart, and has since, been consolidating. So let's see if we can get some idea of where we are now, and my opinion of where we are going this year and beyond.

    Click here to see charts

    First let's see where we have been. I am using the low in 1976 at $100.00 to the high in 1980 at $873.00 as my WAVE 1 of 5. Using the Fibonacci expansion tool, you can see that we are currently around the 2.00 level at $1646.00, which is the minimum for a WAVE 3 completion. We will see, however, that it appears to me that we are not finished this wave yet.

    I believe that we have completed the 3rd wave of 5 in WAVE 3, and are in the beginning stages of wave 5 of the larger WAVE 3. The next level up is the 2.618 expansion level at $2123.70, and the 3.236 level is at $2601.40, so keep those prices in mind. I have also added the 41 month cycle, which is from the low to the high of WAVE 1. This cycle comes in again in March of 2014.

    The market corrected this wave 1 until it bottomed at $253.20 in July of 1999. That's about 19 years. So, using that time period as a guide, the next impulse wave should complete around 2018. So we will start our WAVE 3 analysis from the 1999 low. We are looking at the Fibonacci retracement of wave 1. Note that the price corrected down to the .382 retracement level. That was the wave 2 correction. I have also added the 104 month cycle, which covers the low to the high of wave 1.

    This cycle ends in November of 2016. I have added the Fibonacci expansion to Wave 1 of WAVE 3. Note that so far, wave 3 which began in October of 2008, has also hit the Fibonacci 2.00 expansion of wave 1 at $1814.60, again, the MINIMUM objective to complete a wave 3. The 2.618 expansion comes in at $2297.10, and the 3.236 expansion is at $2779.50. Keep those prices in mind.

    I know that at this point there is probably a lot of discussion of how I am determining the waves, so I'll take a few minutes to show you. Here, I have added our moving averages to the weekly chart of WAVE 3 starting in 1999.

    This gives you a better view of the action. In my wave analysis, a corrective wave is not confirmed until the PRICE, as well as ALL THREE of the moving averages turn down, and confirmation of next wave beginning when the price and moving averages are moving higher again. So, wave 1 ended in March of 2008 and wave 3 began in October of 2008. We also see similar action up here, but here's an interesting point to note!!!

    We have not even hit the .382 Fib retracement yet. If you drop down to a daily chart, you will see that we have met my criterion that the correction is over and the next leg up has begun. The fact that we did not get down to the .382 retracement indicates to me that the next leg up could be explosive!!

    In this chart, we are looking at the Gann fan from the beginning of wave 3 of WAVE 3 to the current high of that wave at $1923.70. The 1x1 line intersects with the 1.618 expansion during the week of June 21st of 2013.

    OK, we're now in the home stretch. I have now added a Gann fan from the low in 1999 to the end of wave 1 of WAVE3 in 2008. We have since broken above the 1x1 line and should head up to the 2x1 line for the next target. That line is above the 1.618 Fib expansion line of wave 3 of WAVE 3 at $2691.70 all year long.

    In this chart, I have both Gann fans together. You can see that they intersect above the 1.618 expansion line during the week of August 16. So based on this analysis, my forecast for Gold prices in 2013 is that we will see AT LEAST $2692.00, on its way up to much higher prices in 2014 and beyond.

    Themes: PRECIOUS METALS, COMMODITIES Stocks: AGQ, AG, SLV, GLD, PSLV
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