Gold rebounded from a Wednesday morning selloff and continues to grind higher toward a series of hidden pivot targets. The first of these is the midpoint pivot of the pattern shown in the attached chart, at 1622.30. This elegant pattern impulsed above an important prior high made last Thursday. A short sale of the midpoint would be a risky bet on a false breakout above the more recent high of 1621.30. The next price objective comes from the same pattern, its ‘D’ target at 1638.70. This level has a lot of company in the way of prior highs and is also regarded as a risky short-sale. The same goes for our next target, 1646.90, covered in yesterday’s tout. And finally we have a somewhat hidden pivot at 1652.80, which was discussed in Monday’s tout. In the event of an accurate reversal at the 1622.30 midpoint, a camouflaged buying opportunity might arise after the pullback. (Posted by Doug “harry” McLagan)
