Thursday, April 3, 2014

It is mildly bullish that June Gold's entire rally yesterday happened in a single bar. This means that no one who wasn't already on board when the futures made their leap was able to profit.  It is also bullish that the rally occurred without a full correction down to my 1272.00 target. Even so, we should take note of the fact that the buying spree, such as it was, was not strong enough to surpass the 'external' peak at 1295.50 recorded Monday on the way down (see inset).  This seems likely to happen today, although it's not quite in-the-bag.  Traders looking to get long, especially night owls, should notice that even on the 15-minute chart, there are some 'hooks' to do so in the form of three (very) minor 'external' peaks.  As always, a small pullback from just above any of them should be viewed as a low-risk buying opportunity.  As we went to press, one such opportunity had already been triggered.

The futures continued to take mincing, marginally tradable steps from one rally target to the next, most recently exceeding by a single point an 1885.25 Hidden Pivot I'd disseminated in the chat room Wednesday morning. This occurred in the final minutes of the session -- too late to offer a comfortable shorting opportunity. The next rally target lies at 1889.75 (see inset), and although we've grown accustomed to seeing these numbers work fairly precisely, I'd be the first to concede that it is not always easy to catch a ride to them. This opportunity will probably appeal best to night owls, but if you plan to use 'camouflage' to get aboard, I'd suggest doing your hunting on the 1-minute chart rather than the 15-minute displayed.  The bigger-picture target, to remind you, is 1933.25, implying that your trading bias should be bullish for now, even if you're inclined to attempt scalping from the short side at minor rally targets.