Gold Is Inching Toward a $400 Breakout Probability

It's too soon to tell if the gold price breakout will be to the upside or the downside.

In fact, the likelihood of a $400 breakout is itself, merely a probability!

It is the charted price pattern over the past year that leads me to consider the possibility that we are approaching a gold price breakout.

Furthermore, charted price patterns are only one of the "technical" factors, and technical factors are only one of three general factors that influence price movements. The other two are the "fundamentals" factor and the factor known as "market trader sentiment."

Obviously, the influence of three different general factors (each with numerous indicators) provides a complex collection of information that can only suggest probable outcomes.

Instead of becoming another predictor of gold's price, I'll stick with simply pointing out the probabilities. After all, no one really knows what the market is going to do.

Any time that you hear or read of people claiming to "know" what the markets are going to do, you are listening to (or reading) mere speculation. They might very well to turn out to be correct in their speculation, but it is wrong and naive to claim that one "knows" what the market will do.

Too often, many new traders jump to the invalid conclusion that a particular "stock market guru" has the ability to know where prices are going, simply because their "predictions" are often correct. The truth is that they are merely studying the probabilities and drawing conclusions about what the market probably will do. That's an important distinction to remember.Article Source: http://EzineArticles.com/7145017gold price breakout