A trading alert in Rick’s Picks on Thursday morning caught the start of a $15 rally in Comex Gold to the exact tick, but it’s what happens next that will tell us whether this is the thrust that finally vaporizes the $700 barrier.  By my runes, the real barrier lies at 693.20, a Hidden Pivot that we’ve been using as a minimum rally target since early April. Gold has been moving rather precisely to our intraday numbers lately, and that is why we should look to this one to tell us what’s likely to occur next.  

Here’s what to watch for: If June Gold exceeds 693.20 by more than a few ticks within 30 minutes of first touching it, that would be a subtle but reliable sign that $700 is likely to yield just as easily. Furthermore, if the June Comex contract closes above the pivot on the first day it touches it, that would imply even more strongly that this month-old rally is about to leave $700 in the dust.

Regardless, on the first approach, scalpers can short 693.20 with a stop-loss as tight as 90 cents, since the pivot looks every bit as promising to me as the one that caught Gold’s 675.60 low last week. Keep in mind, though, that if the stop-loss gets tagged, another Hidden Pivot at 694.80, and yet another at 700.50 – both shortable if you’re very nimble -- will be the next stops on the way to a more important threshold at 724.10. Once above that last number, June Gold would become an odds-on bet to challenge May’s watershed high at 752.90.

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Online Seminar April 21-22

There are still a few seats left for the online Hidden Pivot Seminar on April 21-22, Saturday and Sunday morning, and for the May 19-20 class. To find out more about this opportunity to learn to forecast as accurately as top pros, click here. You can also go directly to the registration page by clicking here, then on the “Upcoming” tab.