GCJ13

Following Wednesday's nasty selloff, the futures were not getting much loft on the rebound.  Now, rather than splitting hairs with a Hidden Pivot target drawn from the lesser charts, we should probably accept the likelihood that a test of May's key low at 1538.70 awaits.  Whether it holds or not, it will be a great place to look for an uptrending abc pattern with which to leverage a speculative 'camo' long.  Camouflage trading is perfectly suited to this task, and so, amidst whatever fear, panic and confusion is generated when the futures flirt with the low, we should look for our opportunity in bullish impulse legs on the lesser charts.

Gold was moving moderately higher Monday evening, presumably gratuitously, following the resumption of trading after a three-day holiday weekend. The April contract is up about $5 at the moment, trading around $1614, but it would take a print at $1629 to turn the hourly chart impulsively bullish.  If that were to occur, notice that the bigger picture would still be bearish, since, as you can see, Friday's nasty dive created a bearish impulse leg on the daily chart.  The larger, corrective pattern that subsumes that leg projects to 1569.90, a target given here earlier. Its midpoint sibling lies at 1634.90, and so any rally to that number should be regarded as an opportunity to get short. Camouflage is recommended if you try it. 

The bearish 1569.90 target here is too clear to ignore, but let's stipulate that the futures close beneath its Hidden Pivot p sibling at 1634.90 before we infer the worst. Alternatively, the futures would need to hit 1670.40 over the next few days to generate a pulse.

Bullish price action yesterday left the futures poised for a final, short-term frillip to 1682.70, the D target of the very clear pattern shown. Getting there should have been a piece of cake; alas, tired buyers have spent the last eight hours playing toe-sies with the 1677.80 midpoint resistance.  Although this will have no bearing on my optimistic outlook for the intermediate term, it makes the target itself a prospect for shorting via camouflage.  This would be just a scalp-trade, but you should infer that bulls are raring to go if the target is exceeded by more than 0.50 or so points. _______ UPDATE (8:25 a.m. EST):  In the tedious fashion to which we've grown almost inured in the last year-and-a-half, Gold's rally died.  It did so at 1682.00, just shy of the target, and although the reaction would have been shortable via camouflage, you can be pardoned for being asleep or too bored to react when the opportunity occurred.  PLease report any fills in the chat room, since, as is customary, I'll provide tracking guidance if I hear from at least two subscribers. Click here to sample Rick's Picks free for a week.

With Comex Gold now entering the second consecutive month of one of the most insufferably tedious dirges seen since the dawn of history, it's probably a good time to notice the cluster of three bullish impulse legs on the hourly chart.  They're a mess, visually speaking, but when you sort out the picture bar by bar, there's no denying that something quietly constructive is going on here.  Accordingly, I'll suggest leveraging the 1675.40 entry trigger of the pattern shown. It's already been tripped, so you'll need to create your own 'camo' trigger on a chart of lesser degree. The move targets 1688.00, with midpoint resistance at 1679.60, so you could loosen up if taking partial profits on the smaller pattern.  _______ UPDATE (11:06 a.m. EST): Although Gold has since relapsed, the rally pattern I'd furnished could have been traded profitably without much stress.  The move came within 1.00 of the 1688.00 target before a wholly meaningless decline to 1667 set in.  My outlook remains unchanged.