The decline in gold since mid-May has mimicked the Chinese water torture, a steady drip drip drip of excruciating pain. It has been noticeably lacking in power, too, since three weeks’ worth of losses have eaten up only $70 of the bulls’ turf. That was enough, however, to completely erase May’s encouraging gains and then some. Perhaps the pain will abate, at least for a short while, once the futures reach the 1152.10 Hidden Pivot target shown? That number’s worth bottom-fishing with a stop-loss as tight as six ticks, but you’ll have better odds if you use ‘camouflage’ to accomplish the task. If you can get short ahead of the implied 20-point fall, you can swing away when you reverse the position. _______ UPDATE (June 8, 9:13 p.m. EDT): Yesterday’s tedium created a bullish impulse leg so feeble that we should probably expect lower prices on Tuesday. The 1152.10 target noted above is still valid, but more immediately, look for the futures to stair-step lower on Hidden Pivot supports, respectively, at 1165.30, 1159.50 and 1153.60. To locate those price points, use the pattern, on the hourly chart, A=1185.60 (6/4 at 5 a.m.); B=1162.10. Alternatively, bulls could buy time with a thrust today exceeding 1178.30.
