Gold’s bounce from a deep hole last Thursday did not quite live up to our expectations, so the outlook is bearish for the near term. More oomph would have pushed the June futures above an external peak at 3270.40 recorded on May 13, but the buying sputtered out well below, at 3208.70. The implication is that if the bounce from Friday’s low hits the green line (x=3219.20) it would trigger a ‘mechanical’ short, stop 2355.90. The trade would be predicated on a target at 3109.40, a good place to bottom-fish aggressively if the opportunity should arise. _______ UPDATE (May 20, 9:20): When a picture-perfect trading opportunity like the short trade recommended above doesn’t produce an easy profit, it’s safe to conclude that the trend you’ve bet on is about to reverse. This one did, although not quite with a vengeance, only a sissy punch below the belt. The rally is bound for a minimum 3360.50, a Hidden Pivot that should show potentially tradable stopping power. If bulls can punch through it, expect a test of the 3448.20 high recorded on May 6.
GCM25 – June Gold (Last:3294.20)
