On 1/26/11, Smartp Risk Model for Gold went on a BUY signal with Gold around 1309. The target specified was 1457 based on Elliott Wave analysis. Gold reached 1446 this week but based on the cycles analysis, it is in a critical TIME pivot or CIT zone of 3/9-3/14. Gold came in high into this zone and is at an imminent top for the Year 2011.
Our approach here at Smartpredictor is an objective one and we don't spew endless rhetoric but present pictures.
The Smartp Risk Model for Gold is undergoing a monthly degree crossover down, and hence issuing a SELL signal at monthly degree wave level. Also, looking at the model it is suggested that Gold may not exceed the March 2011 highs rest of the year. At this point we are expecting a minimum 19.8% correction suggesting that Gold will reach 1157 this year at the minimum. The worst case projection based on current model data is -29.5% but we will come back and revisit this analysis in coming months.
Smartpredictor methods attempt to unravel underlying cycles for any financial instrument utilizing proprietary algorithms. This helps visualize potential turning points for that instrument as well as an yearly roadmap. The Gold Cycles for 2011 are enclosed below. As usual TIME based pivots have no polarity of a high or a low and can be either based on how the market arrives into a CIT. We however assign some best case polarities to these CIT's as shown in the Gold cycles below.
Good luck and happy trading!