Break Out to New Highs

Dow Theory Letters
"To break out to a new highs will require a consolidation and a build-up of internal strength. I think that's what we're seeing now in gold. The first indication that gold is readying for an upward thrust-breakout would be a month-end close of 685 or preferably 700. Even gold-bugs do not realize that gold has never, on a month-end basis, closed above 681.50.

Therefore, a monthly close above 681.50 would be a momentous accomplishment -- which is probably why gold is hesitating now in the 665-670 area."(7/16/07)

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