GLD brushed aside a midpoint Hidden Pivot resistance so easily on Tuesday that there should be little doubt about whether this gold trading vehicle will reach the 121.61 target shown (see inset). Even so, we should want to monitor price action at the 119.71 secondary pivot closely, since a precise hit followed immediately by a pullback could be warning of a fatal retracement to below ‘C’. If there’s a pullback in the meantime to p=117.82 that meets our criteria, a ‘mechanical’ bid there could be warranted. The best place to keep apprised of such developments in real time will be the chat room, but I will also send out an email alert if a trade is explicitly signaled. Be sure to check ‘EMail Notifications’ on your account dashboard if you want to receive these bulletins. _______ UPDATE (Mar 22, 9:25 p.m.): Today’s upthrust didn’t get very far. However, it nonetheless refreshed the bullish energy of the hourly chart by generating a small but technically significant impulse leg. This occurred when GLD exceeded an ‘external peak at 119.12 recorded March 1 on the way down (click here for chart). This increases the odds the rally will reach the 119.82 ‘secondary pivot’; and thence, perhaps, D=121.72. _______ UPDATE (Mar 23, 7:38 p.m.): Today’s weakness generated a bearish impulse leg on the hourly chart, mildly dimming the bullish scenario given above. We’ll know by how much once we’ve seen this pattern play out: click here. If GLD is going to reverse and turn higher, the most bullish way for this to occur would be from the pattern’s 118.39 midpoint pivot. If, on the other hand, the downtrend exceeds the 117.92 target, that would be bearish, at least for the near term.
