The gold futures are now targeting 1734.30 after Friday’s slingshot rebound off of the day’s important low. We were watching all last week for a decline to below 1650, and we finally got it during Bernanke’s speech. The powerful rally that followed confirmed the 1647.10 low as the ‘C’ point of a strong bullish pattern on the daily and intraday charts. The pattern had emerged over twelve trading sessions, but the rally was so powerful that the pattern’s midpoint was surpassed only four hours after the ‘C’ low was made. On the weekly chart, gold is still impulsing upward from the same ‘A’ point, at 1592.10. It looks as if the market will need to expend more bullish energy before we get a suitable pullback on the weekly timeframe. (Posted by Doug “harry” McLagan)
