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Spot GOLD Continues to Act Well Technically Atop an 11% Advance off of its July Low


Below is what we discussed just over one week ago. Since then, Spot GOLD has climbed 3.3%, but most impressively, let's notice that the price structure is threatening to close above its 3-year, down trendline, and both its 10- and 40-Week EMA's, for the first time since mid-Jan 2015.

From an intermediate-term perspective, Spot GOLD is poised for additional—possibly, surprisingly-powerful-- upside that points to target zones at $1250 and $1360/90. MJP 10/16/15

The big, big, picture of Spot GOLD shows the late-July break below a two-year support plateau ($1180/30), which triggered downside follow-through to the 7/24/15 multi-year low at $1077.25.

The initial break below $1085 also represented a violation of the 50%-retracement support level of the entire, bull-market run from $250 in 1999 to $1921.50 in 2011.

However, the initial downside penetration of significant multi-year support failed to follow-through, and, thereafter, Spot GOLD has been carving out a 2-/12 month basing area, which, so far, has left behind a bear-trap low.

Finally, and perhaps most importantly, all of the action in GOLD since July 2013 can be viewed as a falling-wedge formation, which the vast majority of the time is a "trend-ending" pattern prior to a powerful, directional reversal.

The bear-trap false break of key support at $1085, coupled with the falling-wedge formation, makes for a potentially, powerful, upside-reversal combination for GOLD in the upcoming weeks.

Last in Spot GOLD is $1153.90. MJP 10/07/15

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