In another dramatic trading day, gold Wednesday turned a triple-bottom into a quadruple and then shot back up almost $39, leaving important prior highs again within striking distance. The rally gave us the makings of a pattern which would project as high as 1592.60 if confirmed, although we would like the set-up a lot more if it had a single-bar ‘C’. The most important prior highs are at 1585.70 and 1601.40, and a move above 1601.40 would improve the odds that the support zone around 1530 will hold, after all. A rally above the ‘external’ high at 1604.40, especially if it surpasses the high along the wall at 1611.10, would add to the bullishness of the picture. But until and unless 1601.40 is taken out, we will continue to expect the 1530 support zone to be broken. 1456.40 remains our best downside projection, based on a pattern that we have been watching since last week. (Posted by Doug “harry” McLagan)
