Gold got whacked Thursday as it so often does — i.e., at the apex of a rally that may have encouraged a bullish thought or two in the minds of some investors. Alas, the worst selloff we’ve seen in — well, it’s actually been only two weeks — socked the June contract with an $18 loss. In the accompanying chart, some might discern a head-and-shoulders pattern in the ups and downs of 2019. If you’re believer in this formation — and I am not, since they are everywhere one wants to see them — they imply that a downdraft is coming that could bring the futures down to as low as 1220. If it’s any consolation, that would not be much of a victory for bears (aka the Bad Guys), since it would amount to a decline of less than 6%. For the time being, however, I’ll suggest sticking with the 1262.70 target that has obtained for the last two weeks. It is my minimum downside objective and worth bottom-fishing. There’s a chance bulls could find the gumption to turn this bag of bolts around near 1279.40, the pattern’s ‘secondary Hidden Pivot support.______ UPDATE (Apr 16, 6:03 p.m. ET): Today’s savaging changed nothing in the immediate picture. The 1262.70 target remains valid, and a rally to p=1296.60 would trigger an ‘old-style’ mechanical short, stop 1308.00. ______UPDATE (Apr 25, 12:03 a.m.): The adorable little tease is headed up to 1284.00, assuming it can traipse past p=1279.60. I’ll need to see a print at 1340, though, before I throw in the towel on the bearish 1262.70 target. _______ UPDATE (Apr 25, 10:13 p.m.): A slog up to 1287.90 looks likely. Traders can place a mechanical bid at 1280.70, stop 1278.20, if the futures fall to that number after having peaked today in the range 1284.00-1285.00. Here’s the chart.
