Comex Gold Futures

The daily chart shows that GCU9 is working in a downward sloping channel. I am not a big fan of channels, but it does give a pretty good visual insight as to what we are looking at. With all of this downside price action there has been no major drop in the price of gold. There is still downside pressure being applied to the daily chart, but it is in an over extended area of the chart. Price found temporary support at the midpoint of the move at _____ and is now trying to reach D at ____. The 60in chart shows that price ws stopped at the target price, D, for the move down and has bounced off of that level. For price to start higher it would have to go through ____ and then the the first price objective would be ____. For price to restart the move down it would have to go through 903 and then the first price objective for that move would be____.

Gold is having trouble sustaining loft and may have to go lower to buy some R&R time.   However, a pop today touching 936.40 would put bulls back in charge, since that would create a robust new impulse leg on the hourly chart (see inset). Upside potential thereafter would be to as high as 952.80 over the near term; otherwise, the downside targets given here previouslystill obtain: 899.00, and  895.50.

As noted in today's commentary, we should set the bar at _____ to avoid a false bullish signal.  A thrust touching that number would turn the daily chart bullish, most convincingly so if the rally leg doesn't correct for more than a day after exceeding the lower peak at _____ (#1) shown in the chart. The bearish scenario should be equally straightforward:  a test of lows made in April, respectively, near 880 and/or 960.  More immediately, the first hint of a potentially bullish turn would come today at _____. That would create a promising impulse leg on the hourly chart. 

Unless the futures pop above _____ this week, it looks like gravity is fixing to pull them down to at least _____. A two-day close beneath ____, the midpoint support associated with the target, would likely clinch a decline to the target. However, if you're looking for a more subtly nuanced turn for the better, it would come today on a _____ print.  Night owls can try bottom-fishing at ____, stop _____, provided 934.00 is not exceeded first.

A Hidden Pivot at _____ looks like a high-confidence number at this point, so we'll use it as a minimum upside projection for the near term. Buyers should look to get in near _____ Wednesday night, since that's the midpoint sibling of our upside target, but please note that a prior low at _____ may impede the bid.

A midpoint support at _____ is equivalent to the one I've flagged in SLV, but if you bottom-fish there a stop-loss no wider than 0.40 is advised. A downside breach would imply more selling to come and, presumably, a test of the _____ low recorded on June 22. Alternatively, the futures would need to touch _____ to negate the targets, and ____ to turn the lesser charts (i.e., 15-minute and lower) unambiguously bullish. 

The chop-and-slop the last few days has rendered any Hidden Pivot targets that I might proffer useless, if not to say meaningless.  I might be tempted to bottom-fish a swoon to _____ if it were to occur early in today's session, but otherwise I'll be expecting a labored ascent to _____ if that Hidden Pivot's midpoint sibling at 940.00 gets brushed aside.

Signs point higher, although not with much enthusiasm. For the moment, we can use a pattern discernible on the hourly chart that projects to _____. Its associative midpoint is _____, so any decisive progress above that number should be regarded as evidence of the uptrend's vitality. 

The futures looked prime for a thrust to _____ at yesterday's close, although, as noted in the chat room, there are doubts about the sausage-y nature of the price pattern yielding that target. Even so, the fact that all three price coordinates -- A, B and C -- are single-bar beauties seems reason enough to overlook the pattern's flaw and to simply go with appealing look of it.  If this analysis is correct, crucial resistance lies at _____, the target's midpoint sibling, and any pop above that number will be telegraphing a further rally of at least $14.