GCG10

For all of December Gold's histrionics on Friday, the intraday low failed to take out any prior lows on the daily chart; it therefore didn't even come close to creating a bearish impulse leg. Moreover, the first of the prior lows should have been a piece of cake, since it comprised a single-bar bottom anchoring a modest, three-day consolidation (see chart). This low would not likely have provided much support if it had been tested, but in the end, sellers looking down the barrel of a pea-shooter  declined to shoot it out.  These are all subjective considerations, but they contribute to a picture that was bullish to begin with and which has now become moreso because sellers showed such cowardice. Looking just ahead, we should note that the futures ended the week with Friday's sharp recovery still in motion. The nearest unachieved Hidden Pivot worth noting lies  at 1183.50 -- the target of a minor uptrend on the three-minute chart, where A=1167.70 (Friday, 10:33 a.m. EST).  Day-traders should make entry using A-B impulse legs on the lesser charts that have surpassed look-to-the-left peaks, of which there are many.

Gold telegraphed tonight's rally through resistance by an earlier failure to reach the 'd' target of its initial correction and by the shallowness of that correction.  A secondary target at 1185.50 could still contain the rally, and bulls should not break out the bubbly until it is left behind in the dust.  More immediately, as of 1:25 a.m. EST, the futures were just a tad shy of a minor Hidden Pivot at 1178.90, but any progress above it would put the 1185.50 pivot in immediate play.  Here are two other minor pivots where we should expect a pullback that the nimble can trade: 1180.40 and 1199.20

The futures turned up tentatively after make a run at an 1155.00 downside target that was missed by $2.70. This is bullish as far as it goes, but it would take a print Monday night at 1168.90  to suggest that buyers are not terribly intimidated by the 1174.90 resistance pivot we've been using for so long. I've hung out a headline target at 1337.00 if it should get shredded, but I am not expecting this, at least not so soon after the lower pivot was achieved.  Keep in mind as well that the futures could feint to 1185.50 without affecting the odds of a serious correction.

A key target at 1174.90 remains viable, but we'll focus on a more conservative objective for now at 1155.60. That's a Hidden Pivot, and it comes from the pattern shown in the accompanying chart.  An easy move past it would activate another at 1158.20. These two numbers can be used by scalpers, but from an analytical standpoint any lack of resistance will confirm a swift finishing stroke to 1174.90.

December Gold appeared to be struggling Thursday night to seize the advantage afforded by its breach of a midpoint resistance at 1142.80.  The sibling target is 1155.60, and we should therefore use that Hidden Pivot as a minimum rally objective for the near term. Alternatively, a dip below 1125.2o today -- unexpected at the moment, based on the technical evidence -- would turn the hourly chart bearish.