Gold was moving moderately higher Monday evening, presumably gratuitously, following the resumption of trading after a three-day holiday weekend. The April contract is up about $5 at the moment, trading around $1614, but it would take a print at $1629 to turn the hourly chart impulsively bullish. If that were to occur, notice that the bigger picture would still be bearish, since, as you can see, Friday’s nasty dive created a bearish impulse leg on the daily chart. The larger, corrective pattern that subsumes that leg projects to 1569.90, a target given here earlier. Its midpoint sibling lies at 1634.90, and so any rally to that number should be regarded as an opportunity to get short. Camouflage is recommended if you try it.
