I have showed you McEwen's favorite DOW:GOLD ratio charts. In fact, McEwen's DOW:GOLD ratio target is 0.5. In his recent interview with Kitco, he is predicting $2000 GOLD in 2010 and $5000 GOLD when the dust clears. Let's see how McEwen's $2000 target for 2010 lines up with a Fibonacci extrapolation:
Notice how the TRIX(8,5) oscillator is flattening and looks like it want to curl up. I like to use Fibonacci numbers for TRIX periods to look at trends in different time frames. Let me show you:
Note how the long term TRIX (55,34) and (89,55) are looking like they are forecasting higher GOLD prices.
Short term TRIX (21,13) and (34,21) are forecasting higher GOLD prices as well ... In the medium term, it looks like GOLD is still consolidating - like a hurricane gathering energy ...
Becoming an Evidence-Based Trader
2 days ago