I was looking to see if $1180 held on gold after the $1201 high. I thought maybe that would be the perfect correction target. It was (so far) and that is just so right in order to feel bullish. Now the move has voomed up to $1240 on gold.
Rick Ackerman would like that. The past 5 days have been almost a perfect ABCD type pattern (a la Trident Trading). The midpoint pivot P halfway through the CD leg was quickly obliterated. Here is that chart. Elegant!
Looking at pitchforks instead, the blue one has a target around $1245 at the upper parallel, see chart below. Gold already hit $240 today 11 Feb 2016, so maybe that is close enough, now backed off a tiny bit to $1238. One might expect a pullback from the top of the blue fork – it could even retrace to the bottom line at $1080 or the median line at $1165.
The faint green pitchfork median line was at around $1220 and that has already been surpassed.
If this move does not stop at $1245, then it is a runaway impulsive move. The large pitchfork tops out around $1390, almost equal to the early 2014 high – check the top right and top left of the chart below. That would again make beautiful symmetry:
I would like to note the almost complete ignoring of horizontal resistances at $1180 and $1191 in these upside moves, although there was a pullback to $1180 out of courtesy, one might say. The median line of the blue pitchfork ($1165) is where the fastest part of the upmove was and that is not atypical.