December Gold Looks Set for Another Leap
by Rick Ackerman on November 10, 2009 1:09 am GMT · 1 comment
December Gold’s overnight surge yesterday brought it to within two ticks of an 1111.90 target we’d been using to keep us properly bullish for the last $55 or so of the rally. Where to next? We’ll give you our best guess in a moment, but let us caution that we treat every top on the hourly chart as potentially important, since one can never can tell whether the correction that ensues will be the one that leaves bulls distraught, confused and gasping for breath. Actually, you very often can tell, provided you are patient enough to monitor price action on the lesser charts diligently. The logic of this is straightforward, since it is impossible for the major trend to change without signaling it first on the lesser charts. Thus, if an ageless bull market is about to give way to the worst bear market in history, the very first warning of this will occur in the form of a microscopic abcd downtrend on the one-minute bar chart.
We doubt such troubles lie in store for Comex gold, however. Even though the December contract dropped back $10 to end the day, we are still holding to an 1134,50 target that has been a long time in coming. Quite a long time, actually, since it was first signaled back in May when gold was trading around 935. Accordingly, we’re advising subscribers with long-tern positions to lighten up if and when the rally hits 1134.50, a “Hidden Pivot” resistance. We strongly expect a tradable pullback from that number just as we are seeing from 1111.90. Please note, however, that if the rally were to push past the 1134.50 target by as little as $2-$3 on the day it is first hit, we’d infer there’s enough buying power for a short- to intermediate-term finishing stroke to at least 1174.90.
