December Gold was maintaining altitude early Monday morning, borne aloft by a fearsome selloff in Asian markets. The easy push through a midpoint resistance at 1136.70 (see inset) implies that the rally will continue to at least 1148.30, the D target of the pattern. A ‘mechanical’ buy could be attempted on a pullback to 1136.70, stop 1132.80, but I’d suggest keeping contract size to a single unit. The same tactic could also be used at p2 following a decisive push past it, but you should attempt this only if you’re thoroughly familiar with the rudiments of the mechanical trade.
