Gold did what we asked of it on Friday but not much more. The August contract need only have achieved a 1268.70 target first broached here nearly a week ago to stay on a bullish track. The actual high was 1270.00, or 1.30 points more than we’d required. The overshoot was not sufficient to ensure a robust follow-through on Monday, but it nevertheless generated a very subtle impulse leg that we may be able to use to get aboard with entry risk tightly controlled. I have sketched the ABC pattern for your guidance, but initiating the trade could be tricky due to the relatively tiny k-A segment. It implies that even Friday’s minuscule pullback from the intraday high may prove sufficient to have created a valid b-c leg. For that reason, the trade is recommended for experienced Pivoteers only.
