The gold futures have moved up enough to cancel two small bearish patterns and might soon confirm a target which, if reached, would nullify our sub-$1500 targets. The main drama now has to do with the 1599.00 high, which is the ‘C’ point associated with the 1453.40 ‘D’ target discussed last week. If the futures can reach 1578.70, they will confirm a bullish target at 1603.30, which would be more than enough of a rally to send the bears back to the drawing board. The attached chart also shows a one-off ‘A’ which should be considered along with the ‘A’ we are using. If the futures fall below the 1570.50 ‘C’ point, traders will have to recalculate. (Posted by Doug “harry” McLagan)
