Beatdown, Part...Oh, who the hell cares at this point?!

Another beatdown in gold today, triggered by a huge, sloppy market order. I want to believe that the tinfoil contingent is crazy, but with more and more trades like this one, that show a blatant disregard for price, it’s becoming difficult. Anyway, in the aftermath, I thought that looking at the chart would be useful. Below is a daily that takes us back to the first big dump in April.

My read is that a bullish cup-and-handle formation is on the table, but first we have to see an intermediate bottom put in here. There is not much wiggle room on that either. Around these levels is where it needs to bounce if it’s going to.

On the other hand…

Consistent with guys like Jim Rogers who think we are in for a lower low and a longer bottoming process, what looks like a cup today could become a left shoulder down the road. All of which would suggest a process of bottoming that takes us well into 2014, if not 2015. And under those circumstances, the inverse head-and-shoulders would be simply massive and speak to an incredibly powerful upside move. We would just need to show some patience.