Comex Gold Futures

Yesterday's low fell a tick above the 50% retracement line relative to the July 13 bottom, but if the futures were to go still lower today they'd hit a theoretical support at ____ that equates to a 0.618 retracement. These numbers will probably serve as well as any Hidden Pivot that I can identify (one of which caught yesterday's low fairly closely -- i.e., within less than 1.00 point). 

Gold popped a dime above a 959.90 rally target we were using, implying that the next thrust should carry to ____, the first minor Hidden Pivot resistance above it. Please note in the accompanying chart that just a smidgen more than that -- specifically, ____ -- would be needed to kick the buying spree into a higher gear. 

These days, we speak of the price action in Gold as "bullish" in the same way we would describe a patient on life support as "alive".  It'll get better, I'm sure, but probably not before the Great Bear Rally of 2009 (/2010??) ends with either a bang or a whimper.  I've tried to sound encouraging by saying Gold futures are at least tradable while we wait, but after snoozing through Friday's dirge, I'm not so sure. Check out the graph if you want to see a picture of accumulation so quiet that a mere $10 rally would be a relative thunderclap. _______ UPDATE (11:21 a.m.): Gold has topped today a dime above a modest target given here earlier, a Hidden Pivot at 959.90. You can go back to sleep now.

Perhaps it is merely boredom that is inspiring new rally targets each day, but the one that caught my eye Wednesday evening is _____.  Its provenance is shown in the accompanying chart, and either it or a lesser Hidden Pivot as _____ looks likely to contain the next thrust. The lower number is now my minimum upside objective for the near term, but either target can be shorted by scalpers with a stop-loss as tight as four ticks (0.40).

The ____ rallly target given here yesterday still obtains, although the futures may have to pull back to as low as _____ to get a running start for the next leap.  The turn could also come from ______, a Hidden Pivot, but I'd suggest using the lower number and a 0.70 stop-loss if you're going to take a stab at bottom-fishing.

The most useful benchmark I can cite right now is ____, a midpoint resistance derived from the pattern shown in the accompanying chart. It's not very compelling because the larger pattern has experienced so many disruptions, but we can use it as a minimum upside objective for the near term (meaning two weeks or less) nonetheless. It's sibling 'D' target lies at _____, a number mentioned here earlier.  As noted here before, the most powerfully bullish signal we could ask for would be an impulsive rally that exceeds both of the numbered peaks without taking a corrective breather. 

We took a good look at the August futures during yesterday's tutorial session, finding a few reasons why this rally should hit $1000 even if it is not the one that's going to get us to the Promised Land.  Two things to notice:  1) the last selloff failed, by a few dollars, to reach an $899 target that I'd flagged as a minimum downside objective; and, 2) the subsequent reversal has had little difficulty banging out a series of fresh impulse legs on the hourly chart. So what would it take to suggest the intermediate-term picture is more than just moderately bullish?  Answer: An uncorrected thrust from _____ to _____, creating a bullish impulse leg on the daily chart (see inset). We'll wait for this crucial piece of evidence before we get excited about the promising move off $900.

All of the numbers are located on the chart so I don't feel that I have to go over them. This is what my trading screen looks like. I have left off the Pressure indicator for clarity purposes. The daily chart still has upside pressure being applied to it. Price moving toward the____ level. Price did find support at the 907 level. The 15 min. chart has upside pressure being applied to it. Price found support at the short cycle po2 level and is currently oscillating around P for the move up at ____. The price objective on the 60 min chart at ___ is currently acting as resistance to a move higher. There is also upside pressure being applied to the 60 min chart. For price to start down again it would have to go through ____ and then _____ would be P and temporary support.

There seems to be question with gold at this level. The pressure indicator is over extended and it is trying to turn higher. There is divergence at the lows right now which indicates that the internals for gold are stronger than price indicates at this time. The second price objective for the move down is at _____ and it doesn't appear that price will reach there on this leg down. For price to make a new run at _____ it would have to go through _____ and then the first price objective, P, would be ____. A short cycle retracement higher could start with price movement above ____ and then the resistance levels would be ____and finally ___. If this this takes place then there could be a retracement down before the ____ is reached. Price would have to go through ____ to void the current down move. All upside price projections are based upon the current low.