The gold futures have traded up to the vicinity of an important midpoint pivot and are now confronting significant resistance. The 1763.20 pivot has been mentioned here repeatedly, and Tuesday’s strong rally fell short of the mark by $1.30 per ounce. Above the pivot is the 2012 high of 1765.90 and the prominent prior high of 1769.70. Unfortunately, none of these levels can really give gold bulls the all-clear signal, as the pullbacks since the major low of 1526.20 have been so shallow. The same problem exists on the shorter-term charts, as the rally from 1737.30 on the hourly chart has not pulled back enough for our purposes. But given this state of bullishness, traders should watch for a rally that peaks between 1765.90 and 1769.70, since a pullback from there might set up a camouflaged buying opportunity. (Posted by Doug “harry” McLagan) _______ UPDATE (per RA, 2:18 p.m. EST): Up, up and away! On the three minute chart, this extension rally projects to 1787.70 (A=1756.70 at 12:48 p.m.). The target is an odds-on shot for the near term, since the futures have already pushed past its p sibling at 1779.00.
