Although gold impulsed upward yesterday as we thought it might do, it turned around from the high and declined by a surprising $26.70, leaving us with a richly bearish collection of patterns on the charts. The largest ones, identified on Wednesday and targeting 1477.70 and 1453.40, remain in effect, while two impressive new patterns with identical midpoints give us targets at 1549.00, 1537.20, and 1520.20. All of these pivots are buyable, but traders should not have orders entered for the 1520.20 target before the 1526.70 low is broken, due to the risk of a sharp move lower at that moment. The bearish picture would be relieved somewhat by a move above the 1560.80 ‘C’ point associated with the 1537.20 target (which would then be cancelled), and moreso by a move above yesterday’s high, which would cancel the 1549.00 and 1520.20 targets. (Posted by Doug “harry” McLagan)
