Spot gold found short-term support at $1800/ounce. A rally to $1900 from this point would form a bullish ascending triangle, suggesting an upward breakout and offering a target of $2100*. Failure of support, however, would penetrate the rising (secondary) trendline and suggest a correction to $1500.
* Target calculation: 1900 + ( 1900 – 1700 ) = 2100
Gold Bugs ($HUI) and Gold Miners ($GDX) Indexes both broke through resistance to signal a fresh primary advance. With a target of 700 for $HUI, the breakout favors continuation of the current advance in spot prices.
* Target calculation: 600 + ( 600 – 500 ) = 700