Yesterday’s tout laid out the bullish case while noting that it would take a very powerful rally to turn the weekly and monthly charts outright bullish. Not so the daily chart, which last week generated the most encouraging ‘impulse leg’ we’ve seen since October. Will it launch into a follow-through leg equal to the first, a $57 surge? My hunch is that the futures will need to pull back a bit more before they attempt it. If that gives buyers sufficient rest to recharge, we’ll know it when they launch into a ‘booster-stage’ rally of at least $14. Until such time as that happens, my bias will neutral. Day traders should be ready to pounce on opportunities from either side of the market, long or short, but I will signal in real time if something bigger beckons. _______ UPDATE (January 13, 8:37 p.m. EST): Chat-room buzz focused on a supposedly elevated risk of gold taking a nasty plunge on Thursday. I can find nothing in the technical picture to corroborate this, but if it were to prove so, the first sign we might see would be a downdraft exceeding the two labeled ‘external’ lows without a visually significant upward correction. If you want to jump ahead of this prospect, consider shorting whatever downtrending abc pattern results from a breach of the 1091.80 low recorded at 3:15 p.m.
