I’ve tried to provide a longer-term perspective on gold in several recent touts, but the focus returns today to a 1059.70 downside target (see inset) that is both clear and compelling. The futures are therefore implicitly a short from around these levels, but if and when the target is reached, you can bottom-fish there aggressively, particularly if you’ve been short on the way down. More immediately, the hourly chart is bullish, with a minor Hidden Pivot target at 1107.10 that was narrowly missed on Friday but which remains valid nonetheless. Conditions for a ‘mechanical’ bid would be attractive if the futures were to exceed p2=1100.10 by perhaps 2.00 points and then pull back to it. A 1098.10 stop-loss would apply. _______ UPDATE (August 3, 9:44 p.m. EDT): For the umpteenth time, a minor rally in gold has failed to reach a modest target — in this case, 1107.10. This will shift our focus to two bearish targets not far below: 1059.70, noted above; and more immediately, 1067.60, the target of the pattern shown. The fact that the point ‘B’ low is NOT sausage lends authority, if not to say precise predictability, to the downtrend. Position accordingly.
