It’s all just noise until such time as the futures pop above 1293.60. That’s a Hidden Pivot midpoint resistance, shown as a red line on the chart. At that point, April Gold would become an odds-on bet to reach 1335.10. Notice that a print at that price would also put this vehicle above an ‘external’ peak recorded back in August, refreshing the bullish impulsiveness of the daily chart. All this is speculative, of course, and the futures could just as easily break lower. My downside target would be 1229.80, a Hidden Pivot support sufficiently compelling to warrant bottom-fishing with a stop-loss as tight as five ticks. The implied $42 fall from current levels would not alter the bullish look of the chart, since it would amount to a very normal, 56% correction of the promising bull leg begun early in the new year from 1168.30. Early Thursday morning, the futures were struggling to reach a seemingly easy target at 1276.05. This did not bode well for the near term. _______ UPDATE (11:41 a.m.): Don’t know how I overlooked this, but the 1240.00 correction target advertised here yesterday still looks like a “definite,” as well as an opportune spot to try some tightly stopped bottom-fishing. _______UPDATE (Feb 6, 9:31 a.m.): ‘Tightly stopped’ wouldn’t have worked, since in this case the ugliness exceeded the target by 2.70, hitting a low of 1237.30. This is NOT a sign of good health.
