HUI…wave ii support and wave iii price objectives (by Rambus)

Rambus is one of the best chartists and posters who posts at Goldtent. With gold and its PM stocks falling over the last few days this post is one worth posting here as I believe that it shows where the precious metals complex will go VERY SOON, UP - UP - UP! He advises goldbugs "to be strong and buy the pain". Great advice, Rambus. With the banks and the Dow on the ropes and seasonal strength ready again to renew the gold sector, it's a timely message. The current washout and the monthly falls in the main markets are similar to what happened last time the gold sector shot up over several months between 2001-2002 in what was then Wave I.

-> Posted by Rambus @ 13:40 pm on November 19, 2007
We have had a good run from the August 16th bottom at 285 to the November high at 463 for a grand total of 178 points in alittle over 10 weeks. What is becoming apparent at this point is, that rally phase was our wave i up and we are now in the middle to 2/3’s done already with our wave ii down. The chart below is how I am seeing things at this point in time as everything seems to be lining up quite nicely. I think we will see either a 38% or 50% retrace of wave i up and not a 62% retrace, as a 62% retrace would put us under the top rail of our big 16 month triangle consolidation. Click on the chart to enlarge it.

We are testing the 38% retrace as we speak at 395. The old high at 401 is also a good spot to look for support. There are several chart patterns that are suggesting a move to the 50% retrace of wave i may actually be in the cards at this point. Either way we are only talking about another 15 to 20 points lower where we can then launch our wave iii of 3 of III. I can’t believe I just typed out wave iii of 3 of III. This next wave up will be the exact center of this bull market and should be at least 288 points from whichever fib retrace we bounce off of. This should be a good place to pick your spot to get on board the gold train. The sweet spot of this bull market should be close at hand IMHO. Be strong and buy the pain.
Click on the chart to enlarge it.

All the best…Rambus