GCZ13 – December Gold (Last:1314.00)

Even with a double entry signal (see inset) the futures were having difficulty getting airborne late Monday night. That said, entry off the small pattern at the rightmost edge of the chart required an initial stop-loss of five-ticks — just within our range for this vehicle. Since the opportunity is past, however, I am proffering the chart to give you an idea of the kind of set-up you should be looking for.  There are still a couple of ‘external’ peaks yet to be exceeded in this picture, and they have the potential to reduce theoretical entry risk to perhaps as little as three ticks.  Step back to the hourly chart, however, and the picture is moderately bearish, with a ‘D’ downside target at 1294.10 that will become an odds-on bet if the midpoint support at 1305.40 gets mauled.  Either number can be bottom-fished with a tight-stop-loss, or more conservatively using camouflage.  Coordinates for the pattern are: A=1325.30 (11:00 a.m.), and B=1302.70 (5:00 p.m.)