Of course those biased toward gold will relay the rally as big volume as if this is some sort of fresh buying which warrants cheering when in fact it is a short-cover rally. This is the bounce our computer has projected without bias or passion minus the hyperbole. We can see that the Energy Models turned at the low bottoming on July 23rd. The Daily Bullish Reversal stands at 1109 and a closing above that level will confirm the rally.
NY Gold Nearest Futures remains currently trading neutral within our standard deviation envelop defined as 1169.20 to 1079.00. Breaking outside this envelop on a closing basis will often signal a sharp move will follow in the direction of that closing. Combining this with our Reversal System provides a powerful tool to ascertain a change in immediate trend.
On the DAILY level of our model we remain LONG 1 position. The last LONG position was taken on the close of 4th at 109070. At this time in basis points, our net profit is 11909.50 since Jan. 2, 1975. Our general target objective would be to Sell new high on in first week of September against 1144.00-1155.00. We would use a PSXCO at 1084.00 on a DAILY closing basis. Reversing into a short position should be considered if 1084.00 is penetrated on a weekly closing basis.
