Tuesday’s strong upthrust got bulls’ juices flowing in the Rick’ Picks chat room, but I would caution you against letting your expectations get too high. Notice in the chart (see inset) that the A-B impulse leg begun in mid-August failed to surpass any of the peaks recorded when the futures were heavily distributed during the first two weeks of August. The doubts I’ve raised are nothing that another bullish pop on Wednesday or Thursday wouldn’t cure, but we’ll leave the burden with bulls until such time as that happens. In any event, the decisive move through the red line, a midpoint Hidden Pivot at 1205.40, has made December Gold a good bet to reach the 1226.50 target shown. If they can do that and push just a little higher, exceeding an important ‘external’ peak at 1228.60 recorded on August 3, bulls can breathe a sigh of relief, since that would imply the rally is the first potential ‘real McCoy’ we’ve seen in a long while.
