Gold’s Correction Is Fading Fast

By Rick Ackerman:

Short-term, all signs continue to point lower. Although we’ve been using a Hidden Pivot support at1206.10 as a minimum downside objective, the larger-degree pattern shown, with an1199.50 target, suggests the next swoon could do a little more damage. Although it would not destroy the still-corrective look of the selloff from the 1308.80 peak recorded on January 22, it would exceed an external low at 1205.50 to create a fresh, bearish impulse leg of daily-chart degree. The futures could fall to as low as 1168.30 and still be ‘corrective’ relative to the low from which 2015’s promising rally was launched, but at that point the bullish case would be hanging by a thread. Alternatively, bulls could take moderate encouragement from a thrust Friday exceeding an external peak at 1235.60 recorded Wednesday on the way down.

gold_price_daily_12_february_2015

 

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