Switching to the June contract, we see that gold on Thursday did what it has been doing so well for so long, with crushing consistency: disappointing bulls. This has been going on since July; and yet, the gold bugs remain faithful — even worse, they seem hopeful. The chart pattern shown (see inset) suggests they could find short-lived respite at the 1242.70 Hidden Pivot support, and even bottom-fish there with a five-tick stop-loss. But what would be the point? A somewhat less risky trade for those who only play the upside would be to initiate a ‘counterintuitive’ entry using the labeled low at 1243.70 as a point A. If you attempt this, however, I’d suggest shooting for a ride only to the still-undetermined midpoint pivot rather than to the ‘D’ target. If the trade fails, it will likely be the last opportunity gold has to turn around before testing support at 1200.00
