Gold was getting smacked late Monday night, slightly lengthening the impulse leg that had formed earlier in the day on the hourly chart. A downside target at 1633.10 that I’ve billboarded and drum-rolled here looms as a very important number, since a decisive penetration would put its ‘D’ sibling at 1459.40 in play. How decisive? I’d say a 3.00-point overshoot, or a two-day close beneath it, would make the lower number no worse than an even-odds bet over the next several weeks. The provenance of both numbers is shown in the accompanying chart. Please note that a secondary pattern, shown in purple, has a 1638.10 target that could turn the tide for bulls. It will most surely be worth bottom-fishing, preferably using camouflage with theoretical risk capped at 0.60.
