There is nothing to like about December Gold’s recent failure to hurdle March’s 1800.90 peak — a failure whose bearish implications were compounded when, after a brief pullback, a second run at the peak also fell short. The next opportunity we might have to determine whether bulls can get traction lies at 1665.30, the midpoint support of the pattern shown. It can also serve as our minumum downside target for the near term and a place to try bottom-fishing, tightly stopped. Alternatively, but unlikely, would be a strong reversal from somewhere above 1665.30 that vaults the internal and external peaks that I’ve labeled. An unpaused thrust exceeding both would be strong evidence that the consolidation begun a little more than a year ago has ended.
