Much as I’d like to encourage you, the chart offers little reason for enthusiasm over the near term. It was hard not to notice on the last rally that bulls were too enfeebled to reach the midpoint resistance at 1967.10 (see inset), let alone impale November 9’s ‘external’ peak at 1973.30. Even more dispiriting, the subsequent downdraft generated a bearish impulse leg on the daily chart when it exceeded by a decisive $2.90 an ‘external’ low at 1820.00 recorded on December 14. Taken together, these signs suggest that we should not get our hopes too high looking out perhaps 6-9 days. The bigger picture remains bullish but unexciting.
GCG21 – February Gold (Last:1844.70)