Someone in the chat room mentioned the 1007.70 high recorded in mid-February as the potential starting point of an ABCD downpattern yielding a target all the way down at 842.80. That’s technically correct, but if you look at the pattern itself on the daily chart, it’s the sorriest excuse for a downtrend that we could imagine.  For starters, the A-B leg had to back up twice, attempting running starts,  merely to push past two external lows on its way to 882.70 (the ‘B’ low of the pattern).  Then, spent from this bullying attack on support, sellers failed miserably to prevent the subsequent rally from blowing away three (!) external peaks.  This is not a picture of weakness, not by any stretch; rather, it suggests bulls are going to steamroller sellers on the next bull cycle.  Having said that, let me make clear that  my “tough love” commentary — “Why Hasn’t Gold Caught Fire” — was not based on technical evidence, but on the vexatious fact that gold has failed to blow past the $1000 barrier at a time when inflationary fiscal and monetary policy are at a millennial high tide. Putting this curious fact aside for the moment, however, there is nothing in the daily and weekly charts for bulls to fear.  Most immediately, we should consider buying aggressively at 905.30 with a tight stop if continued strength in the broad averages should cause gold to retreat to that price. It is the Hidden Pivot midpoint of the downtrend from 1007.70, and I seriously doubt that benighted sellers will be able to do much more damage than that.  And here is one more thaing to keep in mind: The 1007.70 high, by exceeding last July’s peak at 1005.30, created an impulse leg that has put the burden of proof on bears all the way down to…689.60. That’s what it would take to negate the uptrend on the daily chart, but as far as I’m concerned, that’s about as likely as the 4% GDP figure that the Mr. Obama and his spinmeisters have predicted will pull us out of deficit.