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The Handle in Gold Is Forming

|Includes: Bank of America Corporation (BAC), C, GLD, NEM

On April 9, I wrote about the cup with handle pattern for gold. It turns out ,the handle has formed nicely since then. Attention turned away from gold as the Dow gained 7.46% (584 points), BofA gained 62.75%, and Citi rose 33.7%. Gold on the other hand gained a modest 6.77% and Newmont Mining gained 8.71%. This quiet move is forming a more bullish pattern. As you can see from the figure below of $GOLD ON 4/9/09

 

 

 

 

 

 

 

 

  The chart below shows $GOLD closed today at 938.30. The "safety trade" is turning upward as the market (Dow) moved higher.


 

 

 

 

 

 

 

 

 I do not recommend trading this if you can't wage your risk because gold can do anything. If you believe in the "cup with handle" pattern, buy some now with tight stop or a break above $1,000.

Disclosure: Long GLD