GCG15 – February Gold (Last:1301.10)

The steep rally of the last week has made some in the chat room skittish, if not quite eager to jump off the train. However, I’d suggest hanging on for at least another day or two, since a rally of just 0.90 above the so-far high at 1297.50 would exceed August’s external peak at 1298.40, generating a robust new impulse leg on the daily chart.  Traders who followed my most recent guidance would have been long from 1275.80 to Tuesday’s 1297.80 high, for a theoretical gain of $2200 per contract. To reboard, or to get on board belatedly, night owls should use the following rally pattern to craft a ‘camouflage’ entry opportunity (5-minute): A=1293.80 (9:25 p.m. EST on 1/20); B=1297.50 (10:05); C= (still undetermined). ________ UPDATE (January 21, 11:38 a.m.): Using my guidance above, you bought near x=1295.80, took profits on half the position at 1296.70, and on 25% more at 1298.50. The single contract you’d have left, with a profit adjusted cost basis of 1291.20, can be held to swing for the fences.  I’d suggest tying it to an ‘impulsive stop-loss’ on the 5-minute chart, implying at the moment that you’d exit on an unpaused dive exceeding 1296.30.