February Gold did what we asked of it last week, closing above the 1075.15 midpoint Hidden Pivot of the pattern shown. This is sufficiently bullish for us to infer that the futures are no worse than an even-odds bet to reach D=1082.70, perhaps as early as Monday morning. However, it would have required a close above that number to suggest that a major breakout is nigh. Breaching 1082.70 could still happen, and soon. But until it does, we’ll use relatively minor patterns such as the one in the inset to project the next potential rally leg. If we were to shift to a bullish pattern of larger degree, the highest target I could project for the near term — meaning the next 2-4 days — would be 1089.70 (60-minute, A=1045.40 on 12/2). As always, an easy move past a Hidden Pivot resistance will imply that the trend is likely to continue. Traders familiar with the ‘mechanical’ entry technique can get long with a bid at 1075.15 after it has been exceeded by a few points, playing for a move to 1082.79; or on a pullback to p2=1078.93 of the larger pattern, playing for 1089.70. _______ UPDATE (December 30, 9:16 p.m. EST): Based on the bearish pattern shown, the futures most immediately were a ‘mechanical’ short from p=1062.30, and a bottom-fishing prospect at p2=1052.75.
