GCG16 – February Gold (Last:1075.70)

Mechanical buy in gold may be possibleBuying enthusiasm was in conspicuously short supply last week. The futures managed to hold above the 1059.20 low, albeit barely, whence the last decent rally commenced on December 4 (a Friday), but that’s surely nothing for bulls to crow about. With a new week about to begin, we’ll shun hope and guesswork and play it strictly by-the-numbers. That means the March contract will have to start demolishing Hidden Pivot resistances with the ease of a battering ram taking out a screen door before we allow whatever bullish ‘feelings’ we may harbor toward gold to surface. Friday’s rally did not decisively exceed the midpoint resistance shown (p=1077.25), but if and when that happens, you could buy there ‘mechanically’ on a pullback, stop 1071.0, using D=1092.80 as a price objective.