Gold Cup and Handle Targets 1490 On a Breakout, New All Time High In Silver

from Jesse’s Café Américain

A reader, David B, has suggested that I remind you all of the big cup and handle of 2010, with its subsequent breakout run higher in 2011. The bottom of the first big retracement was on the August 2010 gold option expiration on the Comex.

I admit that being preoccupied with other things, and not wanting to get ahead of ourselves, I have merely been plugging in prices for you, and not discussing the progress of the cup and handle. Since I have had several emails about this, I thought a brief discussion now might be worthwhile.

First as a reminder, here is the cup and handle of today. The target on a breakout is 1490. I have included that notation, admittedly in the ‘small print’ for many months.

I will fill more things in, such as initial targets and retracements, once the formation is activated and confirms its viability with a breakout. The fundamental driver could be a break in the free gold float in London and a short squeeze in search of physical supply, and a deleveraging of ‘paper gold.’

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