Junior miners got pummeled in the wild flux of yesterday’s Fed nullity, but not before they’d edged above the 26.26 Hidden Pivot target shown. Moreover, they achieved this with the price of physical gold languishing. Although the intraday peak surpassed the target by just 14 cents, given the clarity of the pattern, that is sufficient for us to expect a short-lived correction. Look for more downside nonetheless to a minor Hidden Pivot support at 25.35, where you can attempt bottom-fishing with a stop-loss as tight as 6 cents. If it’s hit and I’m in the chat room, please don’t hesitate to query me for further instructions. ________ UPDATE (11:59 p.m.): Yesterday’s gap opening occurred below 25.35, keeping us out of trouble. (Strictly speaking, a bid at 25.35 would have been executed at the opening price simultaneously with the stop-loss). Any further slippage could be expected to bring this vehicle down to the midpoint support at 24.38, and thence 24.01 (p2) if any lower (see inset, a new chart). Either number can be bottom-fished with a stop-loss as tight as 4 cents, but you can be more aggressive if you’ve been short for any portion of the ride south. _______ UPDATE (May 3, 10:04 p.m.): Friday’s opening bar fake-out spiked to within 15 cents of the 24.38 downside target noted above. The subsequent rally generated a subtly bullish impulse leg that I’ve labeled for the guidance of traders looking to get long on-the-cheap. The pattern would become less attractive for this purpose if the rally were to push above 25.12 before it corrects. At that point, we’d have plenty of bullish company. _______ UPDATE (May 5, 8:42 p.m.): Traders who took the mechanical trade I suggested in the chat room yesterday morning got drubbed. Even though we tried to bottom-fish after the stock (ETF) had already fallen, it continued to head lower, tripping a stop-loss 35 cents below where we’d gotten aboard. This vehicle had better pop above 26.87 (an external peak recorded on 2/27), and soon, or it will be in jeopardy of falling yet again to a long-term Hidden Pivot support at 20.83. Some traders evidently saw bullish signs late in the session, but my stance is neutral at the moment.
