As the great philosopher would say, that escalated quickly.  Yesterday, gold reached our purple target detailed in our last update [see: Gold, Ready to Shine?]

As we pointed out in June, 1348.60 is a key price level, as it represents 2 channel lines and the .886 retracement of the plunge from 1377 in July 2016…If GC is able to remain atop its SMA10/20 for the ride up to 1348.60, by all means ride along.

We’ll take a quick look at what to expect next.

continued for members…This is a sloppy Bat Pattern — with no clear Point B.  But, if we give it the benefit of the doubt we’d expect a reversal at the .886 anyway.

On the other hand, since the 1348.60 tag didn’t occur as a backtest to the broken red channel and the purple channel line, GC still has a clear path up to 1380.

As I stated in that last update, I think TPTB will do whatever it takes to keep that giant IH&S targeting 1721 from playing out.  The only thing I can see outweighing their efforts would be a true black swan event such as open warfare on the Korean Peninsula.

It’s only a week later, but we are arguably closer to open warfare than we were then.  Personally, I’d close or trim back my long position here, or at least set some stops at this level.  Every tick higher from here brings with it the risk of a sudden dump — one that need not be precipitated by news or events.

If it breaks above 1380, fine, jump in with both feet (and, solid trailing stops.)  But,  anywhere between 1348 and 1380 is a very risky proposition.  The safe bet is to take profits right here.

GLTA.