After Friday’s wild ride and a Sunday-night high, the gold market has been trending down and drawing an ambiguous picture. The surprising recovery of the gold price on Friday after a post-payrolls attack appeared to be quite bullish at the time, and if we are to stick with that interpretation, we should look for a “C” point somewhere around $1700 or a bit lower followed by a rally that takes aim at a series of prior highs ranging from 1717.40 to 1727.30 on the hourly chart. But a print at 1685.10 would confirm a large bearish pattern with a “D” target below $1600. One trading approach would be to look for camouflaged buying opportunities above the 1685.10 level. But if that “X” point is touched, the gold price might be headed for at least 1653.00, the midpoint of the large bearish pattern shown in red on the attached chart. (Posted by Doug “harry” McLagan)
