GCG15 – February Gold (Last:1231.30)

Gold futures behaved encouragingly well yesterday. For one, the correction off Friday’s high reversed precisely at a midpoint Hidden Pivot support rather than going all the way to the ‘D’ target.  And for two, the reversal was strong enough to create a bullish impulse leg on the hourly chart. The subsequent pullback was well under way Monday night, and my gut feeling is that we’ll be able to get long for any follow-through in the conventional way — i.e., by entering at ‘X’. The signal would be tripped at 1204.00 if the point C’ low of the pattern at 1199.50 survives. You should use a timed buy-stop entry in any case, implying that you get long at X but stay long for just a minute or two, until you can determine whether lift-off will be quick and relatively stress-free.  Thereafter, your immediate goal would be to take a partial profit at p (1208.40 at the moment). _______ UPDATE (10:14 a.m.): The trade worked beautifully, tripping the 1204.00 buy signal at 2:00 a.m. The first thrust went precisely to p=1208.40, the a subsequent pullback provided running room to the 1217.30 D target.  Keep in mind that this was a ‘camouflage’ trade with much more potential — to 1265.70, actually. That’s the D target, on the 30-minute chart, of A=1141.70 (11/30); B= 1221.00  (12/1); and C= 1186.40 (12/5).