Gold did nothing interesting yesterday, but I still like the quiet buoyancy of the rally begun earlier this month. If it pulls back to 1102.00-1103.00, I’ll recommend buying a single contract, no stop. On the chance that it doesn’t pull back, use the 5-minute chart to get long via ‘camouflage’. I’ve sketched a hypothetical set-up for such a trade in the accompanying chart. The key here is an AB impulse leg that exceeds 1122.20 without getting past the slightly higher external peak at 1122.70. _______ UPDATE (9:35 a.m. EDT): The impulse leg somewhat overshot the mark, topping at 1123.70. Entry at the new point x, 1121.80, would have worked anyway, probably because the impulse leg was perceived as a failed rally relative to the obvious high at 1126.30 recorded on August 12. I’ll assume no one did the trade unless I hear otherwise in the chat room, but FYI, my minimum upside projection is 1125.60. Anything more than a few ticks above it would portend 1129.40 (p2), or perhaps D=1133.20. This is an unusual time of day for gold to be rallying, and we should therefore take encouragement from the fact that the rally is holding.
