December Gold achieved a rally target on Wednesday that had been more than a month in coming, generating a new bullish impulse leg on the daily chart in the process. The 1189.90 intraday high slightly exceeded the 1188.30 target shown, although the chart leaves room for an alternative peak as high as 1193.80. Regardless, the move has already surpassed an ‘external’ high at 1189.00 recorded back in June, refreshing the bullish energy of the daily chart. Now, if the futures were to continue slightly higher, exceeding the 1207.30 peak without correcting along the way, that would be the most bullish thing to occur on this chart since January. Night owls who want to get aboard belatedly should consider using this pattern on the 10-minute chart: A=1172.50 (10:10 a.m. on 10/14); B=1189.90; and C=? A point ‘C’ low has yet to be created, but I’d suggest passing up the first before you buy-stop your way in at the ‘x’ trigger price. _______ UPDATE (2:33 a.m.): The trade triggered at 1185.90 (C=1181.50) at 1:40 a.m. The target of the pattern is 1198.90, with midpoint resistance (p) at 1190.20, and secondary resistance (p2) at 1194.60. _______ UPDATE 12:56 p.m. ET): The trade worked, allowing a profitable exit at p=1190.20 before the futures swooned to 1173.90. The gain per contract could have been as much as $800. We’ll steer clear of this vehicle for the time being, since the big, gratuitous intraday swings seen over the last two days have verged on psychotic. _______ UPDATE (1:24 p.m.): Gold’s psychotic swoon has stalled at the 1189.10 midpoint pivot of this pattern on the five-minute chart: A=1162.50 (yesterday at 8:20 a.m.); B= 1191.70 (today at 8:20 a.m.). That means D=1203.75 and p2=1196.40, both with tradable implications.
