A run-up to the 1389.60 target (see inset) is not quite a done deal, but I’d say the odds are about 80% that it will be reached, probably within the next 3-4 weeks. Most of last week’s price action occurred above the 1314.00 midpoint pivot, and that is bullish. Moreover, it has taken place following an upside breach of several very real ‘external’ peaks (labeled #1, #2 and #3) on the daily and intraday charts. All of this bodes well for bulls, who endured considerable pain and discouragement between early September and mid-December, when the futures slid nine percent, from 1365 to 1238. _______ UPDATE (Jan 9, 4:18 p.m.): Gold is taking a breather, but we won’t know how much oxygen it needs until we’ve seen more corrective action. A pullback to the green line at 1276.10 would be discouraging and maybe seem even a little scary, but for those of you who trade in and out of this vehicle, it would also trip a ‘mechanical’ buy signal for a ride to as high as 1389.60. ______ UPDATE (Jan 11, 4:17 p.m.): Bulls should take encouragement from the way Feb Gold has been cavorting above the 1314.00 midpoint pivot, turning it into a support for the next push higher. Check my GLD tout elsewhere on the page for an equity-based strategy to get long.
