In the histrionics of the last few days, gold has shown no great eagerness to decisively reverse the correction from early December’s high. While it is true that Wednesday’s sharp rally created a bullish impulse leg on the intraday charts, the follow-through has been less than inspiring. Let’s set the bar at 1148.10 for now so that we don’t mistake mere noise for a potentially meaningful resurgence. The rally could chop around as much as it likes, but once it crosses the starting line at 1128.70, the thrust would have to carry, unpaused, past 1148.00. In the meantime, we’ll monitor the corrective pattern in the chart closely, since incipient strength would presumably be telegraphed by a turn from the midpoint pivot shown, or from somewhere above it. The pattern is hypothetical at the moment, since ‘C’ might not survive the night.
