I’d set the bar for turning bullish again at 1268.50, but we needn’t wait till that threshold is reached to jump in on the long side. Each of the last two thrusts refreshed the bullish impulsiveness of the hourly chart, and that is sufficient to warrant nibbling around the edges. For starters, that would have meant using a conventional entry trigger at 1257.60 on Friday (see inset) to get long. Since the opportunity is past, I’ll recommend placing a ‘mechanical’ bid there for two contracts once the futures have traded up to at least 1258.50 and executed a ‘lazy’ pullback lasting for at least three bars to the green line. Your stop-loss would be at 1255.10. I’ve sketched this hypothetically for your further guidance, but you shouldn’t do the trade unless you fully understand the two conditions governing ‘mechanical’ entries._________ UPDATE (Jun 26, 10:27 a.m. EDT): Gold marginally exceeded my 1258.50 threshold but couldn’t sustain altitude for even a second consecutive bar, so there was nothing done on the trade. The subsequent collapse has been about par for bullion these days — i.e., egregiously overdone and far more disappointing than the last rally was encouraging. This is a commodity simply marking time, and the tedium and frustration won’t end until the dim bulbs who get paid to throw Other People’s Money at the markets wake up one morning in a very different mood that is favorable toward gold. Exactly what might cause this mood change lies beyond speculation at the moment. In any event, the selloff in the August contract still looks bound for at least 1217.50. Alternatively, it would take a pop exceeding 1268.50 to turn the hourly chart bullish.
