excerpt from A Big Move, by Howard Katz.
At the same time that these fundamental forces are unfolding, we have one technical principle after another calling for a massive rise in gold. As I noted back in October, 2009, the $1,000 level, which resisted any price increases for a year-and-a-half, has now turned into a support level. Furthermore, it looks very much as though the pull back which started Dec. 3 did not make it all the way back to $1,000 but ended Feb. 5 at the $1,050 area. This leaves a gap of approximately $50 between the expected pull back and the actual point.

Such gaps are unusual. Most pull backs go right to their expected level. To create such a gap, the long term bullish force must be very powerful. It means that the bulls do not need any help from the support at $1,000. Such technical patterns are rare and are a chartist’s dream. (The fact that gold fought off two back to back bearish news items on Thursday and Friday, closing unchanged, shows the same kind of power.)