For once, gold did a little more than we asked of it, rallying yesterday to a 1219.50 peak that exceeded our minimum expectation by fully 12 points. The next rally leg could carry to as high as 1232.70 (see inset), assuming the 1199.30 point ‘C’ low of the pattern shown holds. Trades should look for a ‘camo’ buy signal on charts of 5-minute degree or less once 1207.70 has been reached. As always, an easy move thereafter through the 1216.00 midpoint pivot would be telegraphing more upside to D=1232.70. ______ UPDATE (9:16 a.m.): Gold worked its way lower overnight, never tripping a buy signal. That would come now at 1203.40, with p=1211.70 and D=1228.40. but I am no longer recommending the trade, since gold rarely moves strongly higher during the regular session..
