Today’s chart is intended to throw cold water on any spark of enthusiasm you may be harboring for gold right now. As you can see, there’s plenty of room for the futures to fall if they’re going to test the lower trendline. My guess is that this will occur, although I doubt the selling would go much further than that. The additional good news is that a subsequent bounce within the pennant would require less energy for an upside breakout because the boundary lines will have narrowed. Most immediately, however, the lesser charts are bullishly impulsive and project to 1674.10 if p=1667.70 can be exceeded on a closing basis. (The relevant pattern can be found on the 15m chart, where A=1653.10 at 9:45 a.m. EST on 12/27, and B=1666.10.)
