The ‘mechanical’ bid I’d suggested last night at 1257.50 failed to trigger because the futures traded no lower than 1259.40 intraday. The pattern itself, with a 1278.50 target, remains valid nonetheless, as does another potential ‘mechanical’ opportunity to get long from p2=1268.10 (stop 1264.60). We could get shut out again in the same way, but the best way to get aboard come-what-may would be to use a ‘camouflage’ entry strategy. For an example of how this type of trade works, check out August Gold’s 5-minute chart. After a false start that produced a small profit, the first valid signal thereafter came at 9:20 a.m. off this pattern: A=1260.00 (8:50 a.m.); B=1264.00 (9:05 a.m.); and C=1261.70 (9:15 a.m.). This could have gotten you aboard a $12 rally with theoretical entry risk held to $110 per contract. The 1278.50 looks like a lock-up to me at this point, but it would take an easy and decisive push past it to imply that August Gold has bigger things in mind — most immediately a run-up to crucial resistance just above $1300.
