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4

GOLMB0OZ

5533

5431

5330 5229 5127

5826 4925

4823 4621

4528

D=0319 0=4762 H=477Z L=4737 C=4767

Figure 4 Looking at the chart for August Gold, there are several points I want to

make.

On March 10, prices gapped upward to what would become the iow of a trading range at 4737. There was no way at that time to know for sure that such a trading range would develop. Interestingly, this gap up was at almost the same level as the prior gap down which, as Ill show later, is a warning that the down move is about over.



GOLD-IBBOZ

5533

5431

5330 5229 512 7 4925

4823 4722 4621 4520

<- 3/lB gap

D:B331 0=4892 H=4909 L=4852 C=4856

Figure 5 Fronn there prices trended upward, undulated up and down, and ranged between the low of 4737 and a high of 4909 made on March 31.

The initial high and the low for the range have been established, but it is not yet clear that this is a trading range, because a trading range is characterized in this book by a minimum of two swings and looks like this or this W. In Figure 5, prices are still very much in an uptrend.



SOLD-1880Z

5533

5431

5229 5 4925

I

4B23

DaLi 25->

4722...... 1

1 :

4621

4529

5=0426 0--4792 H=:4884 L=4?59 C=4790

Figure 6 When is it clear that prices are in a trading range? The fact that it was a trading range becanne clear only as prices turned down from the high of April 19 toward the minor low of 4759 on April 26. That last leg down formed an /\/\ on the chart.



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