Loading ...Rick’s Pick for Tuesday
$GCJ16 – April Gold (Last:1193.40)
Posted February 8, 9:06 p.m. EST
Monday’s surge did everything we’d asked of April Gold and more, raising the odds that this rally is more than the usual Whoopee Cushion effusion that has repeatedly teased bulls to the limits of their patience for the last four years. At the intraday high, the futures had demolished a daunting resistance at 1191.90, where April Gold peaked precipitously in mid-October. That leaves only a lesser peak at 1232.30 (see inset) and January 2015’s ‘Matterhorn’ at 1308.00 as impediments to the resumption of the long-term bull market. If the rally, which is still uncorrected on the weekly chart, continues without a significant pause, surpassing both of those peaks without taking a breather, I’d infer that the bear market is over. In the meantime, because the uptrend is becoming overextended, I’ll forego a night-in-advance trading strategy, since getting aboard this late in the rally is going to be tricky no matter how we attempt it. I do not mean to suggest, however, that it could not get much more overbought, and go significantly higher, before buyers take a rest.