Here is an hourly chart of pit trading in April gold.
I had been expecting a big drop in gold but the action of the past couple of days has changed my mind.
Notice that the move down from point a at 579 looks like a classic three phase correction. The low near 534 occurred right on strong support at the 2 and 1/8 multiple of the 1999 low at 252. The rally from point d has moved the market past my estimated resistance at 550 and past the last top on the swing down from c to d.
All in all this now looks like a market which is about to make new bull market highs. I am expecting a move up to resistance around 598 which is the 2 and 3/8 multiple of the 252 low.
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