The daily chart shows a consolidation pattern that probably has at least another 3-5 days to go before gold might be ready for another strong leg up. The lesser charts remain easily tradable intraday, however, as the graph (see inset) attests. Friday’s low occurred to-the-exact-tick at a 1211.90 Hidden Pivot support, producing a bounce worth as much as $1500 per contract to any trader who was paying attention. Whence might the next short-term opportunity come? Following a marginal breach to the downside of 1211.90, I’d look for a ‘counterintuitive’ set-up like the one shown, using the big ABC pattern. _______ UPDATE (February 29, 9:11 a.m. ET): Using the existing point ‘C’ low at 1212.00, the futures rallied overnight to trigger an entry at 1223.68. The stall so far almost precisely at p=1234.35 has validated the pattern, which projects to D=1258.70. (60-min, A=1207.60 on 2/22).
