Another bullion rally laid an egg. So what else is new? Under the circumstances, I’m featuring a 15-minute chart with a very modest rally target at 1262.80 rather than one that appeared here last week with a 1277 objective. The pattern shown is gnarly enough to work very precisely, and it doesn’t hurt that Friday’s rally stalled almost precisely at the 1251.80 midpoint Hidden Pivot. That implies that a decisive move past it would reach 1257.30 at least, or 1262.80 if any higher. Judging from the way the futures sold off into Friday’s close, however, it is not exactly a foregone conclusion that bulls will take a flying start when trading resumes Sunday evening. Despite this, the pullback to the green line was in theory a ‘mechanical’ buy, even if in practice we would have used a ‘camouflage’ entry to reduce the initial risk significantly. _______ UPDATE (Mar 27, 12:22 p.m. EDT): Gold is doing its version of the Acapulco cliff dive after failing to reach my “modest” target at 1262.80. What a stretch! But yes, I did promise I wouldn’t diss bullion, only read the charts disinterestedly. In that regard, GCJ 17 would become a so-so-mechanical ‘buy’ on a pullback to p=1251.80. Odds would be better buying x=1246.20 mechanically, stop 1240.70, but even then I wouldn’t look for a subsequent rally to get to the still-obtaining 1262.80 target.
_______ UPDATE (March 29, 1:40 a.m.): This evening’s dirge has dampened my enthusiasm for bottom-fishing at 1246.20. If you’re eager to go against the trend anyway, I’d suggest trying it at 1243.50, two ticks above the minor corrective target shown (click here for chart), with a 1242.90 stop-loss.
