We’ll focus on the small picture, since it provides better information at the moment than the big one. December Gold tripped a counterintuitive ‘buy’ signal on Friday when it rallied to the green line (see inset). Because the point ‘c’ low of the pattern fell so close to ‘a’, the signal should be regarded as a very good one, meaning very promising. That implies not only that the futures ‘should’ reach p=1269.10, but that they must reach it if bulls are to remain (much as I hate to use the word) ‘hopeful’. As always, a decisive push past p would imply the D target — in this case, 1276.50 — is likely to be reached.
