Gold’s performance so far this week has been disappointing but technically of little consequence. However, because the downtrend penetrated a midpoint support which earlier yesterday had evinced a fairly precise bounce, we should assume that the correction will continue down to at least the midpoint’s ‘D’ sibling at 1345.50. A decisive penetration of that number would imply still more weakness, while a rally exceeding 1367.40 would put bulls back in command, at least for the short-term. _______ UPDATE (August 21, 10:36 p.m. EDT): I signaled a bullish trade via an e-mail alert about 30 minutes ago, but it was stopped out shortly thereafter. Beause the ‘camo’ pattern looked so promising, I’m given to infer that gold will remain weak for at least the next several hours or possibly longer. The outlook would brighten, however, on a print at 1368.80. That’s a tick above an ‘external’ peak visible on the five-minute chart, and it could set up another subtle buying opportunity like the one noted above.
