Friday’s wacky price swings easily exceeded the 1273.80 rally target we’d been using for the last several weeks. This Hidden Pivot lodestar helped keep us confidently on the right side of the move, even when the rally stalled, sometimes for days at a time. The $7 overshoot of 1273.80 suggests that bullish ABC patterns of a larger degree are at work pushing gold higher, including one with a 1384.10 target that was included with the last tout. For the moment, however, we should use a somewhat less ambitious pattern to take the stress and guesswork out of trading this vehicle’s ups and downs in the days ahead.  The one shown has a 1308.80 target that has been well validated by some precise hits at both p and D.  (Note that last week’s peak at 1280.70 occurred a mere $1.20 from where we might have predicted.)

For trading purposes, I’d suggesting getting long at p=1250.15 using ‘camouflage’; or ‘mechanically’ at 1220.83, stop  1191.40, provided you know how these trade set-ups work.  My hunch is that a ‘mechanical’ entry on a pullback to 1250.15, stop 1230.60, would get us aboard with little discomfort, but I am reluctant to recommend this strategy on a Sunday night, since one never knows what sort of mood will greet the new week. Let me mention as well that a move to the 1308.80 target would slightly exceeded the ‘Matterhorn’ peak at 1308.00 recorded in January 2015.  I’ve commented on the significance of this peak, but to refresh your memory, let me repeat this again: An upward penetration of 1308.00, however slight, would be very bullish — enough so, in my estimation, to break the back of the bear market begun in November 2011. If you would like to learn more about the Hidden Pivot Trading Method, click here.  Many who frequent the Rick’s Picks chat room have mastered it.  Meet and converse with them by taking a free trial subscription here.

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 -- Published: Monday, 7 March 2016 | E-Mail  | Print  | Source: GoldSeek.com

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