GCQ10 – August Gold (Last:1222.00)

The futures look finally to be leaving the 1214.90 midpoint resistance behind, presaging a run-up to as high as 1261.80 over the next 3-5 days.  More immediately, they are tracking a minor bullish pattern that points with some clarity to 1236.20.  If it’s breached by more than $1 or so, we should infer that a test of mid-May’s 1251.40 high is imminent. Night owls can try buying on a pullback to 1220.00, the midpoint associated with the 1236.20 target, but I’d suggest using camouflage if available to limit the entry risk to four ticks or less. ______ UPDATEThe futures dipped as low as 1218.20 overnight, so any attempt to buy down near 1220.00 with an ultratight stop-loss would have been stopped out for a small loss.