Gold and Silver Are on the Launching Pad

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GLD closed at a new monthly all-time high in November.

Often following big breakouts you get a check back.

GLD pulled back from 192.39  to 183.15 in 6 days.

On the 7th day it carved out an NR 7 Day…the Narrowest Range in 7 Days suggesting a resumption of the advance was on deck if the impulse off the early October low and the following early December breakout were the real deal.

GLD exploded following the NR 7 day.

These contractions are often followed quickly by expansions in the direction of the underlying trend.

So the ramp on December 13th was a bullish omen for significant new highs in GLD.

Regular readers will recall that we target the 233 region this past summer…measuring from the November 3rd 150.50 low.

In sum a breakout above the December 1st high of 192.39 will be a classic case of “the second mouse getting the cheese” indicating at least the first half of 2024 will see gold (and silver).

Few have any idea of how high the metal can scale the golden wall of worry.

WD Gann likened a major breakout to water rising  above a levee after basing for a long time.

Once it’s breached, the water becomes a powerful force—unlike when it was “damned”.

Drilling down to the hourlies shows a fractal of the above big picture monthlies.

GLD has been working on a triangle.

It is on the verge of an hourly Rule of 4 Breakout…a breakolut over triple tops.

There are no quadruple tops.

Govern yourself accordingly if you think GLD will fail once it “comes out” again.

Notice the entire hourly setup is a Bull Flag in the context of the impulse from mid-December.

Notice GLD has cleared the Tops Line from early December.

Once GLD offsets the open gap from early December (black elipse), a Jump The Creek continuation buy signal will be triggered.

The Second Mouse Will Get the Cheese.

Typical legit runs in gold see the junior miners ramp. That is where the leverage is.

A daily GDXJ shows it is on the launching pad.

Today is an OpEx and it looks like there is an agenda to tickle the 40 strike.

As well GDXJ is sporting an mini inverse Head and Shoulders pattern (bullish) that projects to 42 region.

Checking a daily GDXJ from July shows a larger inverse Head and Shoulders that projects to 48-49 once the Neck Line at 39.50 is cleared.

A 60 minute GDXJ shows the late November breakout and a picture perfect backtest (magenta) followed by another impulse to the topside.

GDXJ is coiled in a Stein & Handle (a cousin to the Cup & Handle pattern).

As you can see north of 38.80 opens the door for 40 + today.

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