GCZ10 – December Gold (Last:1270.80)

December Gold (GCZ10) price chart with targetsThe pitch of yesterday’s rally looks too steep to sustain all the way to 1290.90, our target at the moment, but bulls weren’t giving much of it back Tuesday night.  There are two places where you might try bottom-fishing in anticipation of a shallow pullback: near 1264.40, the Hidden Pivot midpoint of the larger pattern; and just above it, at 1268.40, a lesser midpoint (see chart) that should contain the correction if the rally is to resume full-bore shortly.  Camouflage entry is suggested at the midpoint, but in neither case should you risk more than four ticks initially.  ______ UPDATE (1:46 a.m. EDT):  A long from 1268.40 would have worked, since the futures went no lower than 1268.10. With four ticks at risk initially, you should have taken profits on half the position (or implemented a trailing stop) at 1269.60, where your paper gain would have equaled three times the 0.40-cent stop-loss at the time of entry. The actual high so far has been 1271.90, and if you’re still aboard you should work the position so that no loss is possible.  You’ll be off and running if 1274.60 is touched before 1268.00. ______ UPDATE (10:46 a.m. EDT):  Gold went nowhere overnight, biding it’s time as Japan futilely struggled to hold down the yen by supporting a doomed dollar. FYI, the lower target, 1264.40, came within a dime of nailing a subsequent intraday low at 1264.50.