Sunday, February 27, 2011

IAG Squeeze Long

IAG is set to continue its rally for several more weeks as it confirmed a weekly squeeze long signal on 2/11/11 and has now pulled back to support.  Note that DI+ > DI- and the ADX is rising strongly.  Gold is now setting up a new squeeze long on the weekly charts and should it confirm a long signal it will only support IAGs advance.

At the moment we can't be sure if the recent breakout is from a 4th wave triangle or a B wave triangle.  If the former, then the advance should last another 12 to 13 weeks.  If the latter, then the advance could last more than a year. In either case, the action in gold should affect the outcome and should be watched carefully.

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