December Gold’s failure last week to reach an ‘easy’ midpoint Hidden Pivot at 1954.30 seems like weakness, but I hesitate to draw so obvious a conclusion about a vehicle that likes to surprise us at the turns as much as this one. My bias remains mildly negative, however, and that implies the futures will at least feint beneath the 1913.60 point ‘c’ low of the reverse pattern shown. That would certainly be tradeable for bottom-fishing, but we’ll let price action determine our next move. At the closing bell on Friday, bears remained in charge despite a sharp rally from a mid-morning low. _______ UPDATE (Aug 28, 3:44 pm. EDT): Just posted in the chat room: “I can’t promise you that last week’s low will prove to be the start of a major bull leg, Sparty. But I’m confident this bullish pattern, with a 1995.00 rally target, will make you money regardless — and it could also clarify the outlook. Today’s high occurred a single tick from p, validating the pattern. It has also set up an appealing ‘mechanical’ buy if Dec Gold should pull back to x=1934.00 (stop 1913.50). Click here to call up the chart.
GCZ23 – December Gold (Last:1948.30)