On Sunday night the gold futures confirmed a new and elegant pattern whose midpoint and ‘D’ target make the 1632-1653 range a target-rich environment. The new pivots are at 1632.40 (‘P’) and 1643.20 (‘D’), and we refer you to the August 9 gold tout for the other three, lest we overcrowd this one with bolded green digits. Both of these new levels are somewhat below important prior highs, as the attached split-screen chart shows, which means that shorting either of them would be an act of front-running, a trading tactic that can be worth the risk in the gold market. In fact, looking at the five pivots under consideration, our two new ones are the only ones among the five which look like reasonable shorting candidates. Many gold-market participants are watching the important prior high of 1646.40. A breach of that level might bring in a good deal of bullish money that has been on the sidelines for a while. (Posted by Doug “harry” McLagan) _______ UPDATE (1:50 p.m.): Our ‘C’ point was broken shortly after the COMEX pit opened this morning, cancelling the pattern and its targets. A vigorous afternoon selloff has retraced most of the impulse wave but has not reached the key prior lows from 1608.10 down to 1605.90.
