Last week I posted charts showing how the daily swing low on gold held at a key price support level. We then switched to a 60 minute chart of the NYSE-Liffe YG contract. At that point it was apparent that the intraday support levels were serving as "stepping stones" for a continued rally, at least on an intraday basis. Here's an updated 60 minute chart:

Click on image to enlarge!

The red trendlines show how the current upside targets were calculated. In each case the target level is derived by multiplying the prior high to low swing by 1.272. Intervening resistance has broken pointing to both those targets and when targets overlap, they’re even more likely to “pull” price. If we can see a break of the next resistance level from the current swing, 1663.50, it would confirm that the pattern is maintaining to upside and we’d actually have a third target overlapping the current targets. It would be rather unusual to see 3 targets overlapping with no intervening resistance and NOT see price reaching that area!

For more from Mark including his “Chart of the Day”, visit MJBraun.net.