In after-hours trading, April Gold tripped a ‘counterintuitive’ buy signal this evening when it rallied to the green line at 1201.78. I’m not convinced the correction is over, so I won’t recommend initiating the trade unless you do so via ‘camouflage’. Essentially, this would entail using an uptrending ABC pattern on the three-minute chart or less to fashion a conventional entry trigger of minute degree. Your initial theoretical risk should be held to no more than about five or six ticks. From an analytical standpoint, if the futures cannot achieve p=1207.35, at least, after triggering an entry signal on such a promising pattern, they would be warning of more weakness over the near term.
