Gold bounced off of another midpoint pivot on Wednesday, and the new pattern gives us at least one more upside price target to watch. This one is at 1872.50, and we say “at least” because there is a second possible “A” point for the pattern which projects up to a “D” target of 1880.60. The midpoint sibling of the higher target is 1847.10, a level which might be too close to the “B” point to justify a trade. The pair of “D” targets, however, are both well hidden, and the odds seem to favor at least one of them rewarding a short sale. Traders wishing to short the 1872.50 target should consider selling at 1871.90 with a stop at 1873.10. For the 1880.60 target, orders at 1879.90 (sell) and 1881.30 (stop) are recommended. These stops should not be tightened, but the selling levels can be set a bit closer to the pivots if you prefer to lessen the amount risked. All of the pivots discussed here depend on the pattern’s “C” point of 1813.60 not being revisited. Note also that the comments made in yesterday’s gold tout remain in effect. (Posted by Doug “harry” McLagan)
