Loading ...Rick’s Pick for Wednesday
Precise Benchmarks
For Gold Traders
Tuesday’s feisty rally exceeded the 1296.40 rally target we’d been using by a relatively modest $2.40, but because the pattern associated with the target is so clear, even as small an overshoot as occurred will have bullish implications going forward. Accordingly, I’ll suggest using the pattern shown (see inset), with a 1314.50 target that should be familiar to you. It is a logical minimum upside objective for the near term, but I wouldn’t count on it for precise stopping power. That’s because the A-B impulse leg of the pattern is not a legitimate one, having failed to surpass any external highs on the daily chart. Still, it’s good enough for our purposes — i.e., staying on the right side of the trend without fear. It’s also good enough to imply that an easy move through it would be bound for a test of the 1345.20 election night high.