Gold is ready for a big breakout. The target by year end is 1150-1200$. It may sound a little bit too optimistic and premature, but charts don’t lie.

Right now we are stuck in a huge symmetrical triangle. Triangle are continuation patterns and as you know, the bigger the bigger the pattern the more violent would be the move. There is a really strong resistance at 1000-1050 level. Just imagine if this level is taken out and all the stop orders above are hit. That would be one heck of a rally.

My suggestion is to start accumulate GOLD right now as a more longer term investment. Start accumulating in 1/5 portions (every buy is 1/5 of your maximum position). Place stops at ~940 level. Add another position, as we trade through 950-960$.

Considering this is a long term position, you may also try selling Call Options to earn additional money from premium. Use your free trial option to find out more about this strategy. Click to claim your Free 30 Day Trial of MarketWatch’s Proactive Fund Investor Newsletter.