Gold XAUUSD Daily - Buy Zone in Pullback in 9 Week Uptrend

Time at Mode Methodology looked for a rally to the 1290 level last month, which it reached. Once the rally completed its target, I was able to see that the mode was really 9-weeks and it allowed for the market to have rallied to 1300+, which you can see here.

Since there are 4-weeks left in the uptrend and this current decline looks to be just a correction within the uptrend, I think it makes sense to re-enter long here at 1234 and look for 1300 again in the next 4 weeks.

Risk is approximately $20-$40. Upside is $60-$80. You decide how much to risk. I'll say Risk $40 to make $60, but that is being conservative.

Reason for correction? Market isn't rallying Central Bank Money Creation. US Growth, jobs, earnings, etc, have come in a bit better than expectations which is notching up strength in interest rate forecasts going further into the future. However, I think this is just a correction from SEVERELY overbought. Silver, by contrast, hadn't reached its target, and I'll make another chart about silver next.

Tim

1:58PM Friday, February 6, 2015