GCZ19 – December Gold (Last:1524.60)
Author: Rick Ackerman
Published: September 1, 2019
Gold came under pressure last week because the institutional thieves who tend the markets were busy pumping up shares. Even so, I am going to raise my minimum upside target to 1666.10 because of the healthy look of the monthly chart (see inset). The 1622.60 target of a lesser pattern I’d displayed here earlier remains valid. In fact, the pattern that produced it would trigger a weak mechanical buy if the December contract were to pull back slightly more, touching x=1522.40. I say ‘weak’ buy because the C-D leg never quite rallied to our sweet spot around 1574 before pulling back; it got no higher than 1565. I am not recommending the trade for that reason, but also because of the implied risk that the futures will breach C=1488.90 before resuming their upward course. How long that will take depends on how much more short-covering DaBoyz can milk from a supposedly imminent — for about the 50th time — trade deal with China. We already know that whatever supposed deal is reached, it will be a face-saving nothingburger, and that the broad averages will be an attractive short on the news. Until then, we should be prepared for stocks to waft higher. _______ UPDATE (Sep 5, 10:35 p.m. ET): Today’s selloff tripped a mechanical buy at 1522.40, stop 1488.80, but I’ve suggested paper-trading this one because it has $13k of initial risk on four contracts. Here’s the chart; let’s see how it goes.
