Gold's Rallies Are Almost Too Feeble to Trade

Gold’s performance this week has been underwhelming, to put it mildly, so today’s chart, although bullish, sets a low bar. The April contract tripped a mechanical ‘buy’ signal today, but the initial risk of nearly $500 per contract makes it an unappealing bet, especially considering the tepid price action that had preceded the signal. Instead, I’ll suggest we look to do our buying after the futures have popped above the 1256.20 midpoint resistance.

That would exceed the labeled peak at 1255.90 as well, generating an encouraging impulse leg on the lesser charts.  Selling Wednesday evening has been lackluster so far, suggesting it won’t take much of a push to get things rolling in the right direction.

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