The rally begun a week ago looks too tired by now to suggest it’s going anywhere, although there are purely mechanical reasons, still, for trying to squeeze off a bull trade. Using the third point ‘C’ of a presumptive consolidation yields a D target at 1451.40 and a 1427.70 midpoint. The entry trigger for this pattern has been tripped, but we should focus on a lesser pattern that could get us aboard with significantly less risk. A point B high has yet to be formed, but notice that the potential set-up already has a (very subtle) single-bar A going for it. I have sketched a few hypothetical bars to guide camouflageurs, but even if no trade develops, price action relative to Hidden Pivots in both patterns could be revealing with respect to gold’s mood right now. _______ UPDATE (10:58 a.m. EDT): The pattern I’d sketched yielded a 1423.60 ‘camo’ entry and a profitable exit on half the position at the 1426.90 midpoint. Its 1433.60 target was not achieved, however, and exit from the remainder of the position, for a scratch, would have come at 1420.10 if based on the creation of a bearish impulse leg on the chart shown. As of the moment, gold’s 30-min chart is impulsively bullish, but the futures are breathing too offer much encouragement.
