GCZ16 – December Gold (Last:1342.20)

Gold rally blew past two peaksThe futures blew past the 1346.10 target with ease, implying that an ABC pattern of greater magnitude, with a correspondingly higher target, is driving this rally.  The one shown projects to 1430.80, about 5.6% above current levels. The futures tripped a theoretical buy signal to this number when they hit the green line today. However, the implied $3100 initial stop-loss is reason to look for other, less risky, ways to get aboard. Since only one subscriber reported using the guidance I put out last night to get long, I’ll save more-detailed tactics for the chat room on Wednesday, assuming the interest is there. Self-starters can use x, p or p2 to get long ‘mechanically’, or to generate camouflage buy signals at any of those levels, provided the pullback to them meets our simple criteria for ‘mechanical’ entries. Note:  This rally looks quite promising.  Notice how it blasted through two external peaks on the daily chart in the space of a single day. If buyers knock off a couple more peaks this week, that would be even more encouraging._______ UPDATE (September 8, 9:05 p.m. EDT): Any lower and we should brace for more corrective action down to at least 1337.50; or thence to 1332.10. Either of these Hidden Pivots can be bottom-fished with a stop-loss as tight as four ticks.