Today, January 24, 2018, Gold futures almost broke through a key resistance level at 1355.8 when prices hit 1355.3 today (see Intraday Gold chart below).
Looking at the Weekly Gold chart below, when prices move above the #2 point on that chart (@ 1374.9), we plan on entering the Gold Futures market. Before that, look for a move past 1355.8 and then again a move above the resistance level @ 1365.80 as shown on Daily Gold (Feb.2018 Comex) to signal the beginning of this major move.
This move today portends a HUGE move in Gold in the near term. Why? Because of a very wide 1-2-3 bottom that took an entire year to form (from Dec. 2015 until Dec. 2016) as seen in the Monthly chart below. If prices break above the #2 point of that Monthly chart (@ 1374.9) the potential move to the upside using the 50% Retracement Rule is 1478.9 (Low of 1046.2 in Dec. 2015 and a previous High of 1911.6 Sept. 2011). Therefore, our plan is to enter this market certainly after a move above 1374.9 and possibly soon at 1365.8, with a goal of 1478.9 which may take quite some time to reach.
Looking again at the Weekly Gold chart below, you can see the trend line is clearly heading up, with key support @ 1236.50 and the key resistance of 1355.8 being approached today (see the Intraday Gold chart below for today’s action so far).
We are keeping a close on Gold Futures, waiting for a break through resistance at 1355.8 and again at 1365.8 and a clear signal a major move is in swing when the #2 point on the Monthly Gold chart is breached @ 1374.9. Stay tuned!