Room for Just a Little More Weakness in June Gold

June Gold’s chart leaves a little more room for corrective weakness than did the March futures’ chart. Specifically, the selloff of the last three days has yet to breach the 1180.70 Hidden Pivot support of the patterns shown. If that were to occur, we would have to infer that more downside to at least 1173.30 awaits. That target is calculated by simply sliding up to the commanding high at 1220.40 as a point ‘A’ for the downtrending pattern. Traders should be aware that the 1190.90 midpoint pivot of the first pattern could have been shorted ‘mechanically’ at around 6 a.m. EDT Monday to produce an eventual profit of about $1000 per contract. For your further information, a mechanical short from the 1187.20 midpoint pivot of the larger pattern is already ‘live’.

gold_31_March_2015

 

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