A small but technically significant structural resistance at 1740.00 is still the number that bulls must beat to show they are capable of shaking off last Wednesday’s assault by sellers — including, presumably, some big ones with friends in high places. Most immediately, night owls should pay heed to a minor, bullishly impulsive pattern that was evolving late Sunday night (see inset). Based on the so-far low at 1713.70 — a potential point ‘C’ — a long from ‘X’ would imply about $180 of theoretical entry risk per contract, or more than twice what we generally risk on gold trades. You can try buy-stopping your way aboard nonetheless, but only via a ‘camo’ pattern of lesser degree. Please be aware that if this rally cannot generate a C-D follow-through leg equal to A-B’s 7.30 points, it would be a mildly bearish sign for the near term, auguring downside to at least 1696.10. That Hidden Pivot was derived, on the 15m chart, from the following, somewhat unintuitive coordinates: A=1727.30 (3/1, at 3:30 p.m. EST); and B=1705.40 (3/2 at 10:15 a.m.). _______ UPDATE (9:42 a.m. EST): The target came within 60 cents of nailing this morning’s 1695.50 low. Meanwhile, the bull trade never triggered.
