Gold has come crawling out of the gate Monday morning, down as much as $13 just ahead of the NYSE opening. The bounce from 1738.40 is mildly encouraging, however, since this level corresponds almost to-the-tick with a midpoint Hidden Pivot support. In theory, for uptrends to remain dominant, corrective abc patterns must reverse at or near their respective midpoint pivots as may be happening here. When this has occurred, we also know that a relapse breaching the pivot would likely find its way down to D=1730.00, whence a presumably tradeable bounce precisely from that Hidden Pivot would become likely. In this case, the fledgling rally is approaching the point ‘c’ high of the pattern and would negate the pattern itself with a print at 1746.80. That would be reason for an added ounce of optimism, putting a 1754.40 target theoretically in play (15-min, A= 1728.60 on 5/29 at 4:00 a.m. EDT). ______ UPDATE (June 1, 7:05 p.m.): The 1754.40 target boldfaced above caught the intraday high within four ticks. I have slightly modified the pattern to show a 1770.00 ‘D’ target that would become an odds-on bet to be reached if buyers can push the futures decisively past p=1753.80. Be on the alert for a ‘mechanical’ buying opportunity, since gratuitous swoons are always possible in this vehicle. _______ UPDATE (June 2, 5:15 p.m.): Gold’s tortuous, mincing rallies, punctuated by gratuitously nasty plunges, have become too tiresome to be taken seriously. The futures are easily tradeable, however, using the Hidden Pivot tools at our disposal. Stay tuned to the Trading Room and post your technical observations if you care to interact with this vehicle.
GCQ20 – August Gold (Last:1734.10)