Thursday, September 6, 2012

In the wee hours of Thursday, the gold futures have rallied to levels not seen in almost six months and are targeting 1714.60 and 1734.30.  This week's narrow trading range in the 1690's has given way to an upside breakout that has reached 1708.00 thus far.  Today is the first of several eventful days in terms of central bank announcements and government economic data, and it would appear that gold's uptrend has resumed.  Our 1734.30 target is familiar to subscribers and is based on the 1592.10 'A' point on the daily chart.  The consolidation in the 1690's might have gathered enough energy to pop the futures above the 1714.60 level, but traders should be aware of that target as well, which derives from an alternate 'A' point at 1611.80.  And we should be on the lookout for determined price-capping by the bears in connection with the many upcoming news events.  A short sale of the higher pivot should involve a stop not lower than 1735.20.  (Posted by Doug “harry” McLagan)

The rally from late July's low near $1.20 has gone almost as far as it can go without achieving anything of significance on the daily chart. Notice how the recent high at 1.2640 fell a tad shy of an 'external' peak at 1.2703 whose breach would have created a bullish impulse leg.  Even if buyers succeed this time, it will have taken three tries, implying that deep-down, they are lacking in confidence. Such a rally would nonetheless be tradable via camouflage from the long side, especially following a 'b-c' pullback from just above 1.2703.

I'd speculated here last week that stocks would hit the ground crawling after Labor Day, but in fact they are barely even doing that.  I plan to hold an online trading session Thursday morning nonetheless -- all questions considered -- so stop by if you're in the 'hood.  A link to the session will be provided in the chat room shortly before it begins, but I'll also disseminate the link via e-mail to all who have checked 'E-Mail Notifications' box on their My Account page. That, by the way, is the best way to be notified in timely fashion if I put out a trading recommendation intraday.  If you don't subscribe but would like to see what you can do with Hidden Pivots, even when things are slow,  click here for a free trial subscription.