What Gold Needs to Do Now

With today’s thrust, February Gold has extended its rally from 1238.30, a bottom recorded on Monday that could prove to be important. It occurred less than a dollar from a target we’d used that had been three months in coming. A bounce lasting another 3-4 days would be appropriate if the larger downtrend is fated to resume. In any case, the rally would need to surpass the 1321.00 peak labeled in the chart to demonstrate real staying power. The futures should be traded with a bullish bias in the meantime. I haven’t established a tracking position because getting long at the low required bidding a few ticks above where I’d suggested. Subscribers who traded my guidance aggressively and got long nonetheless have enough of a cushion by now to relax and do as they please. The so-far high of the move is 1259.70, representing a $21.40 reversal. If you don’t subscribe but want to join in the fun, click here for a two-week free trial to Rick’s Picks, including access to a 24/7 chat room that draws great traders from around the world.