“Turning to gold, the P&F chart below is extremely interesting. Gold rallied to the 1340 box and then backed off for three boxes to 1310. Following gold’s rally to the 1340 box, gold formed a little consolidation pattern. Normally, the consolidation formation will break out in the direction that existed prior to the consolidation, which means that gold “should” break out to the upside.
If gold breaks down out of the little consolidation formation to 1300, that would be bearish. However, if gold breaks out to the upside from the consolidation pattern to 1350, that would be very bullish and would suggest higher prices for gold. Russell opinion — Gold will break out to the upside.”