Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Emerging Bullish Scenario for Gold


It is no coincidence that the next and probably the most highly anticipated Euro-zone Summit is scheduled right in the timeframe for a low in the 5.5 month (122 day) cycle in spot gold prices.

Within a cycle of such length, the bottoming window is +/- 7 days in an imperfect cyclical world, which means that gold already may have bottomed.

If not, then there still remains risk of a negative reacton to the Euro-zone Summit plan, which could send gold into another nosedive next week. That said, gold has climbed $45 off of Tuesday's pivot low at $1701.98, a rally that exhibits bullish form, which if accurate provides clues that a new upleg could be in progress.

In addition, the strength has emerged right within the apex of a 4-month triangle that has the right look of a bullish continuation pattern. If that proves correct -- and the triangle digestion period is complete -- ACCOMPANIED BY A 5.5 MONTH CYCLE LOW -- then gold prices could be in for an extremely powerful advance that should hurdle prior rally peaks at $1759.70 and $1803.30 on the way to revisit the September high at $1921.50.

As long as the 12/06 pivot low at $1701.98 remains intact, I have to go with an emerging bullish scenario for gold and the SPDR Gold Shares (GLD).

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!