Adam Hewison released another 4-minute quick video update on the recent ‘bullish strength’ in the Gold Market boldly entitled “Has the Gold Bull Finally Arrived?”

Adam notes that the recent consolidation in prices is building strength, and the recent support off Fibonacci levels (bounce) was a bullish sign that could target and perhaps break the $1,000 level.

I’m not quite on the “Gold Bull” camp yet – I will need to see a clean break above $1,000 to get bullish, as mentioned in my prior gold update entitled “Two Competing Weekly Patterns in Gold.”  Adam is of the opinion that a bullish Inverse Head and Shoulders could be completing soon which would be confirmed with a break above the neckline at $1,000 per ounce.

Consolidating Triangles – which is what we are in now as the dominant short-term pattern – have a tendency to break either way, and it’s often best to wait until that break occurs instead of trying to guess the breakout direction unless we’re aggressive traders or perhaps are trading on fundamental reasons beyond the technicals.

As a bonus, here is a “Chart Art” arc chart of the @YM (mini-gold) prices which shows valid arc levels going back to the recent past and swinging forward into the future – gold has broken out time-wise from these arcs drawn off the first impulse up off the late 2008 lows:

(Click for full-size image)

I will be discussing the Monthly, Weekly, and Daily structure of gold in much more detail in this week’s Intermarket Technical Analysis Report (please visit the Premium Section for subscription and more information).

Corey Rosenbloom, CMT