Gold is likely to remain under pressure as long as the stock market stays buoyant. Even so, the April contract is on a mechanical buy signal right now that used a 1252.00 bid to get long and a 1241.10 stop-loss. I haven’t established a tracking position, however, because there was only one mention of the trade in the chat room — by a subscriber who did not make it clear whether he’d opened a position. Regardless of how the trade plays out, we should look for a possible second entry opportunity if the futures come down to within a point or two of the 1228.30 point ‘A’ low shown. That could set up an appealing ‘counterintuitive’ trade, since trader worries at that point would center on whether the futures were about to break down. _____ UPDATE (March 23, 10:42 a.m.): Gold is getting schmeissed today, down as much as $33, negating the trade I’d proposed. Hidden Pivots aside, the April contract looks bound for a test of the 1191.50 low logged on February 16.
