Yesterday’s choppy rally exceeded the bullish target at 1091.10 that we’d been using to predict the course of this latest buying spree. The clear implication is that even higher prices lie ahead over the near-term. The move is especially encouraging because the target, a Hidden Pivot resistance, was a fairly important one — the highest I could have projected using the hourly chart.  Now, I’ll suggest setting an alert at 1098.10, a single tick above an important ‘external’ peak recorded on November 16. A print at that price would energize bulls for a push that could dwarf the very modest rally that has occurred since gold bottomed in mid-December near $1045.

I’ve reproduced a long-term chart lest permabulls grow excited prematurely. At the very least, just to make the monthly chart seem interesting, the futures would need to surpass the two minor peaks shown. The higher peak lies at $1232, implying a 14% rally from these levels. Thereafter, a continuing move to the green line would trip a major ‘buy’ signal for a bull-market leg that could hit $2286.  This is still (very) wishful thinking at this point, but that’s no reason to be dismissive of the relatively subdued rally that has occurred so far. For what it’s worth, it would take a rally exceeding $1433 to negate the bear-market target we’ve been using at $814. Click here for a free trial subscription that will allow you to access the chat room, Rick’s daily touts and intraday alerts, and ‘impromptu’ analysis sessions online for two weeks.

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 -- Published: Thursday, 7 January 2016 | E-Mail  | Print  | Source: GoldSeek.com

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