by Rick Ackerman, Rick’s Picks
Gold has a scary habit of pulling out of its all-too-frequent kamikaze dives just before splattering on the deck, technically speaking. If, for one, yesterday’s selloff had exceeded 1187.20 to the downside, we might have expected it to continue to at least 1175.60. Instead, bulls showed up in a nick of time, turning the futures higher from 1188.30. The result was an impulsive rally on the hourly chart that has kept alive the large, bullish pattern shown. It projects to as high as 1227.50 over the near term, with only a single significant impediment between here and there: a midpoint resistance at 1205.50.
To get long ahead of the move, I would suggest buying a pullback to 1205.50 after that Hidden Pivot has been exceeded decisively – i.e., by about $4-$5 (see inset). An 1198.20 stop-loss would apply. That is a ‘mechanical’ entry, and it may be best suited to those who awaken Thursday morning to see that a rally and correction have already occurred. But one could conceivably get aboard earlier, and lower, by using the ‘camouflage’ technique from current levels. As of around 5:00 p.m. EDT, the best place to look for set-ups was on the 15-minute chart. We shall see.
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