A 1219.20 target has served us well, tempering any misguided enthusiasm we might have had to attempt bottom-fishing as the price of gold has fallen since early May. The target, a Hidden Pivot, still looks like a logical place to bid aggressively, albeit with a tight stop-loss. However, as you can see in the chart (inset), an additional target at 1241.90 derived from a somewhat lower point ‘A’ beckons as an additional spot to put a speculative bid. Camouflage is the preferred tactic, but it may be possible to get away with a 1241.90 bid and a stop-loss as tight as 3-4 ticks. If you decide to do it that way, I’d suggest a single-contract trade. _______ UPDATE (June 26, 3:54 a.m. EDT): Gold is getting slaughtered tonight as usual, with a so-far low at 1242.60 that fell just 0.70 shy of the target given above. The subsequent $12 bounce was tradable, although only with more difficulty and stress than we should prefer. If you were able to get long near the low and exit on the bounce, then great. Otherwise, a short to 1219.20 is the play from here.
