Around 1 a.m. EST, the April contract, bound presumably for 1801.40, was bullishly impulsive on the 15-minute chart, manifesting the ABC coordinates shown. Assuming the so-far point ‘C’ at 1787.40 survives, the ‘X’ entry trigger would come at 1789.10, with implied theoretical risk initially of $180 per contract. Since that’s more than twice our acceptable limit for ‘camouflage’ trades in Gold, we’ll need to find an X entry point on a chart of even lesser degree. My recommendation is to look for it in the form of an uptrending ABC pattern on the one-minute chart if it looks as though the trade will trigger on the ’15’. If you want to dispense with camouflage by initiating the trade at 1789.10, stop 1787.30 (i.e., a tick below C), use a timed buy-stop, allowing perhaps 30-60 seconds for the position to go in-the-black. If it does, be diligent about taking a partial profit at the 1790.70 midpoint, since the futures may be too timid tonight to leap above two mildly daunting highs at 1792.00 and 1792.70 (Tuesday’s peak). _______ UPDATE (3:00 a.m. EST): The futures made it exactly to the 1790.70 midpoint before dropping back to 1787.60, two ticks from ‘C’. If the 1787.30 stop survives the night, I’ll establish a two-contract tracking position for your further guidance. Profits taken so far at p on half the position would insulate the rest of it from loss down to 1786.40, but any lower would imply a $20 loss per tick on two contracts. _______ FURTHER UPDATE (10:22 a.m. EST): Price action in this vehicle has turned so vicious that we’ll keep our distance for the time being. The overnight trade was stopped out for pocket change when the futures did a $17 dipsy-doodle. A subsequent lull set up an $18 power dive this morning that occurred in the space of just eight minutes. This sensational nastiness could be an indication of either intermediate-term toppiness or too many cocksure bulls. The daily chart remains impulsively bullish nonetheless, and it would take a power dive to 1706.30 to mitigate this via ‘dueling’ impulse legs.
