August Gold has closed above the red line (1880.40) on all but one day since exceeding it for the first time on May 19. This easy flirtation with a key midpoint resistance suggests that an eventual push to the 2082.40 target is unlikely to be labored. This is not withstanding last week’s $45 dive, about which two things could be said: 1) it was not an $80 swoon, as many of them have been since last August’s watershed high; and 2) in true bull-market fashion, the plunge has very nearly been recouped in just a day. The pattern shown should work well for ‘mechanical’ set-ups and profit-taking, but we shouldn’t get our hopes too high that we’ll be able to augment long positions with such fire-sale bargains on the way up.
GCQ21 – August Gold (Last:1892.00)