The rally continues to show signs of good health, with each new thrust exceeding a previous peak. When this occurs, the rally is telling us that it wants to go higher. So that you can better judge how much higher, today’s chart shows the next six ‘external’ peaks to be summited. An easy and decisive move past one would be assurance the next is likely to be reached. For trading purposes, a peak need only be exceeded by a single tick to make the rally ‘impulsive’. In fact, it is when the breach is by only a tick or two that the best trading opportunities tend to arise, since the impulsive strength of the rally is better disguised. That can create ‘camouflage’ entry opportunities for us that help minimize the risk of getting aboard. We need only zoom down to charts of lesser degree when this occurs, with the goal of finding bullish ABC patterns of minor degree within larger patterns that have provided a go-ahead signal.
For current purposes, I would suggest the following steps: 1) use the daily chart shown for big-picture signals; 2) zoom down to the hourly to find correspondingly bullish impulse legs; 3) use the five-minute chart or less to identify an even smaller entry pattern. Ahead of gold’s opening Sunday evening, the relevant point ‘A’ low on the hourly chart was 1162.50, last Wednesday’s low. A pullback creating a point ‘C’ low near it would be especially enticing for a ‘counterintuitive trade’ of the kind I have been emphasizing during the weekly tutorial sessions. _______ UPDATE (7:36 p.m. ET): No change. The futures have come down to 1168.60 so far, leaving the bullish ABC pattern noted above not only intact, but potentially tradable.