December Gold’s slight slippage beneath the midpoint support at 1281.30 shown in the chart (click on inset) is mildly bearish, implying as it does that sellers are about to push the futures down to at least 1254.10. If and when the decline hits 1275.00, I’d recommend a ‘mechanical’ short on any subsequent ‘lazy’ rally back up to the red line. A stop-loss at 1290.40 is recommended. This trade is intended only for subscribers who are comfortable using ‘mechanical’ entry set-ups. ________ UPDATE (Oct 23, 6:27 p.m.): Gold rallied today, generating a slightly promising impulse leg on the hourly chart. However, I’d suggest withholding the benefit of the doubt from bulls until we see how they handle the two precise benchmarks shown in this chart._______ UPDATE (Oct 24, 6:26 p.m.): Bulls in fact handled our benchmarks poorly, relapsing into their wonted dirge after topping at 1285.30, a measly 0.70 above the lower resistance shown in the chart. _______ UPDATE (Oct 25, 8:24 p.m.): The futures fought off sellers all day, yielding little ground. Even so, the 1254.10 downside target remains valid in theory and is still in play. A 1286.30 print on Thursday would put bulls mildly back on the offensive.
