Most of Friday’s modest gains were achieved in the space of a few minutes in the dead of night — hardly an encouraging sign. Still, the retracement that followed failed to take it all back, so bulls will start the new week with a small edge. Assuming they are on the offensive when gold begins to trade Sunday night, you can use the 1346.30 target shown (see inset) as a minimum rally target. The close proximity of p=1339.80 to some peaks to the left of it could create entry opportunities for alert traders Sunday night or Monday morning. _______ UPDATE (Sunday night): The futures are off to a shaky start, generating a short but menacing impulse leg on the hourly chart by surpassing three prior lows without an upward correction. The new chart (see inset) is intended to provide context for chat-room strategizing of such opportunities as may develop overnight. As always, price action at the p midpoint of the downtrending pattern will be key to gauging whether last week’s weakness is likely to continue into the new week._______ UPDATE (9:08 p.m. EDT): The Bad Guys have triumphed yet again, driving stocks higher and bullion lower overnight. Now April Gold will fall to at least 1303.60, a target derived by sliding the point ‘A’ of the pattern shown up to March 18’s 1360.20 high. That’ll be a buying opportunity, tightly stopped as always (and a rally in the meantime to 1323.60, the p midpoint of the pattern, would be shortable).
