Gold has struggled for three weeks to fulfill the lofty promise of early April’s strongly impulsive rally. While the tedium may have discouraged bulls, particularly when one of the downswings briefly devalued contracts by nearly $100, all of the pooch-screwing has had little effect on an 1873.90 target that has been in play since April 22. The fact that nearly a month’s worth of Sturm und Drang has yet to get the June contract even to the 1770.10 midpoint Hidden Pivot has been frustrating, but it looks like it will not be much longer in coming. Bulls were poised to get there when last week ended, and unless Sunday night opens with bullion caught in a game of whack-a-mole, we should count on a test of the resistance by no later than early Monday. What we should want to see then is a decisive push past the pivot, or a two-day close above it, since either would make the 1873.90 target an odds-on bet to be reached. ______ UPDATE (May 9:56 p.m.): Before this agitated hippo plummeted today for no good reason, it exceeded two peaks recorded in mid-April, one of them ‘internal’, the other external. That is bullish, implying this pullback is merely corrective. _______ UPDATE (May 21, 8:59 p.m.): A pullback to the green line in this chart has triggered a ‘mechanical’ buy, but the signal is a weak one because the pullback was not ‘textbook’. Plan on sitting the day out as June Gold enters its second month of sideways tedium.
GCM20 – June Gold (Last:1727.40)
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