I’ve vacillated between rally targets at 1141.90 and 1143.00, but since Friday’s rally came with a hair of the former, we’ll use the pattern shown to plot December Gold’s immediate course. The implication is that a decisive move above p=1141.90 will put p2=1164.00 in play. The less hesitancy buyers show in pushing past p, the more likely a follow-through to at least 1164.00 or possible to D=1186.10. It therefore follows that an easy move through p would set up a ‘mechanical’ buy there, stop 1134.50, on a pullback that meets our rules. I would encourage you to use this tactic only if you are familiar with the simple rules that govern it.
