Tuesday, April 23, 2013

Today's tout for Comex Gold sets an ambitious benchmark for buyers, but it will take nothing less to refresh the bullish energy of the hourly chart.  Traders should look to the 5-minute chart for low-risk entry opportunities, using the 'external' peak that I've labeled for leverage.

The next thrust will have to clear the 1458.50 peak shown to refresh the bullish energy of the hourly chart. That's well beneath the 1465.50 target of the minor pattern in play at the close yesterday, and bulls need only supply enough push to get past the 1441.80 midpoint to make it happen. More immediately, traders looking to get long with camouflage cover should zoom down to the 5-minute chart, where an 'external' peak at 1434.50  (4/22 at 8:15 a.m. EDT) looks promising as a place to leverage a subtle pullback.

The clock ran out on yesterday's slow-motion short-squeeze, leaving the futures a couple of ticks shy of the 1562.00 rally target shown.  What you should notice first, however, is the fine 'camo' opportunity that followed the creation of a point 'B' high just a tick above a prior 'external' peak (labeled N in the chart).  Granted, the double bar 'C' low is not exactly perfection. But the  trade the followed entry at 'x' was manifestly worth a B grade nonetheless because bulls would have experienced little pain once aboard.  Our next rally target is 1564.00, and it can be found on the hourly chart using the following coordinates: A=1536.25 (4/19 at 10 a.m. EDT); B=1557.50 (4/21 at 10:00 p.m.).  Since 1553.25 is the pattern's p midpoint, night owls might look for a camouflage entry opportunity on a pullback to that number.  ________ UPDATE (11:42 a.m. EDT): The algos have had little trouble pushing this projectile through minor Hidden Pivot targets on the hourly chart. The last of them lies at 1579.00 (A=1530.75 on 4/18), a logical minimum upside projection for today.  Camo traders can try shorting there, but I'd risk no more than three ticks theoretical per contract.