An early-morning surge yesterday pushed the futures through the midpoint resistance shown, improving the odds of a follow-through today to its 1321.50 ‘sibling’. Ordinarily I would infer that the move is no worse than an even-money bet. But because gold’s rallies since mid-March have been stunted, the burden of proof must rest with the bulls. Night owls looking to board will notice that even the 5-minute chart lacks the subtle handholds we look for when trying to grab safe hold of small abc patterns. Under the circumstances, I can suggest only that you zoom down even further, to perhaps the 1- or 2-minute bars, in search of a suitable hook. If you want to dispense with subtleties, try bottom-fishing the 1293.40 correction target, on the 5-minute chart, of a=1300.20 (5/12, 12:10 p.m.); b=1294.80 (1:25 p.m.); c=1298.80. ________ UPDATE (9:10 a.m.): In overnight trading, gold looked pathetic yet again, failing to reach a very modest rally target at 1321.50. The June contract will need an approximately $50 surge to jump start the rally begun on New Year’s Day. _______ UPDATE (May 13, 7:10 p.m.): No change. In the ‘looking pathetic’ category, June Gold has once again outdone itself.
