GCJ14 – April Gold (Last:1323.20)

Since bottoming on the last trading day of 2013, April Gold’s daily chart has done what we might expect of a trading vehicle in the early stages of a bull market. Which is to say, it has surpassed at least two prior peaks with each new upthrust. The picture of a baby bull would become even more persuasive if the next surge carries above the ‘external’ high at 1361.10 that I’ve labeled in the chart. Ideally, this should occur without a pullback beneath the recent, 1307.10 low, and with no subsequent corrections of significance until 1361.10 has been exceeded.  Meanwhile, the April contract will trip yet another short-term ‘buy’ signal if it touches 1330.90 today or tomorrow. Since theoretical entry risk using the large ABC pattern shown would be nearly $2400 per contract, I’d suggest that traders zoom down to the three-minute chart or lower in search of a less risky entry signal. Using the ‘camouflage’ technique, we should aim to limit entry risk to no more than about $60 for each contract acquired. If I am in the chat room when the entry signal is tripped, pleased don’t hesitate to query me.