You don’t need bachelor’s degree in Hidden Pivotry to see where December Gold is headed over the very near term. The question is whether bulls will take a breather at the 1359.40 target (see inset), a minor one, or instead brush it aside. I expect at least a small pause of perhaps a day or two, judging from the way the futures have pulled back from the midpoint and secondary pivots (respectively, p and p2) the first time they encountered them. However, if 1359.40 gives way easily, that would strongly suggest that a larger, bullish pattern visible on the weekly chart has begun to assert itself. It has a 1482.90 target (!) and a key resistance (i.e., midpoint pivot) at 1394.20. (A=1207.00 on 6/3/16). A theoretical buy signal has already been tripped at 13459.60, but that is of little practical importance, since the signal came with a stop-loss of more than $2000 per contract. There will be better, far less risky ways to get aboard if December Gold is in fact on its way to 1482.90. For now, though, let’s see how buyers handle the implied resistance at 1359.40. ________ UPDATE (Sep 26, 7:12 p.m. EDT): The feebleness of buyers on Monday did nothing to alter the bullish forecast given above. A decisive push past p2=1346.90 is needed to generate a short-term finishing stroke to 1359.40.________ UPDATE (Sep 27, 10:48 a.m.): Far from pushing decisively above 1346.90, the futures are getting whacked this morning. While this hasn’t altered the 1359.40 rally target, it has generated a bearish impulse leg on the hourly chart and cast a cloud over the short-term picture. Let’s see now if the c-d follow-through leg of today’s a-b decline turns from the midpoint pivot, as it should if bulls are about to regain their footing.
