It appears that gold may now just be on the launch pad. With options expiry now out of the way for a few weeks, this claim may just have some merit.

Regards - VHF

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Gold Daily Chart: The Form of the Cup and Handle Is Now Complete and Targeting

$1375 Then $1455

Jesse

June 25, 2010

As the 'handle' of the cup and handle chart formation formed, it slowly yielded enough points to finally place 'the lid' on the cup and hand, and firmly label the rims.

This allows us to set the minimum measuring objectives. There will probably be a run higher to about 1375, with the usual back and forth noise, after the breakout is achieved with a firm close above 1260 that sticks for a week.

Then we will experience the first major pullback, most likely back down to the 1330 level. And then the market will continue to rally up to the 1455 level.

I cannot furnish time frames for these moves at this time. But I suspect the move to 1375 will be fairly expeditious once the breakout is clearly accomplished.



Click to enlarge: http://tinyurl.com/28y38z4

All forecasts are estimates assuming some 'steady state background conditions. If the fundamental conditions of markets change, then the forecast must change to accommodate that.

As an aside, I can see where some chartists might try to feature the handle of this cup as a bearish rising or ascending wedge. This is a weaker interpretation given the greater substance of the cup and handle. It should also be remembered that bearish wedges only resolve lower about 50-60% of the time, and really are not safe to play until there is a clear breakdown. I have paid dearly to learn that lesson when trading stocks from the bear side.

Gold Weekly Chart



Click to enlarge: http://tinyurl.com/2c78bgk

I think I can safely say that the next 24 months will be extremely interesting.