My last tout focused on a possible ‘counterintuitive’ buy if gold eased lower, but the potential opportunity shown looks more appealing — and less risky. Because the a-b impulse leg meets all of our criteria for legitimacy, I am now recommending that you bottom-fish the target shown with a 1301.80 bid for two contracts, stop 1299.80. You can increase the size of your bid if you use ‘camouflage’ to initiate the trade. If the order fills and goes in the black, cash out half of your contracts at 1307.80 and set a stop-loss that would leave you with at least $1000 profit on the trade no matter what._______ UPDATE (Sep 19, 8:26 p.m. ET): The futures tripped a minor buy signal and then died. It will remain valid nonetheless if there’s no dip first below 1315.00. The target in play is 1324.20, with crucial resistance at 1319.60 (60-min, a=1312.60 on 9/18 at 9:00 p.m. ET; b=1321.80; and c=1315.00. _______ UPDATE (Sep 20, 6:11 p.m.): The futures held above the 1315.00 support, but only barely. The above analysis remains valid nonetheless, although odds of moving bullion quotes higher on a ‘Fed day’ are never going to be great.
