GCZ16 – December Gold (Last:1338.60)

Pullback to the green line couldWe’ll stick with little stuff for now (see inset), since Gold shows no inclination at the moment to fulfill big-picture patterns that remain unambiguously bullish. On the five-minute chart, the December contract tripped a theoretical buy signal on Friday that points to as high as 1346.10 over the near term. A pullback to the green line would offer a ‘mechanical’ buying opportunity, stop 1319.40, but I’d suggest substituting a ‘camouflage’ entry if the opportunity arises and you want to reduce initial risk of about $670 by as much as 90%. Odds of reaching the target would shorten if and when the red line, a midpoint Hidden Pivot resistance at 1332.80, is decisively penetrated to the upside. As always, a precise stall at the line would confirm the pattern and the target. _______ UPDATE (September 6, 8:42 a.m. EDT): The futures have rallied $14 after tripping a ‘mechanical’ buy signal on a pullback to the green line (1326.20) Sunday evening around 8:00. I won’t establish a tracking position, however, unless I hear from at least two subscribers in the chat room who initiated the trade using either ‘camouflage’ or a ‘mechanical’ bid. At the moment, the futures have stalled precisely at the secondary pivot of the pattern, 1339.50.  If and when they get decisively past that ‘hidden’ resistance, the 1346.10 target flagged above will become an odds-on bet to be achieved, presumably precisely.