Gold looks like it will need to correct further before it can resume the steep bull trend begun in late May. Most immediately, the December contract would trigger a ‘mechanical’ short if the bounce from Friday’s low hits x=1507.00. Your stop-loss would be at 1525.90, implying initial risk of $1900 per contract. This is a promising pattern as far as ‘mechanical’ opportunities go, meaning I regard odds of a relapse to D=1450.50 as high. However, if the trade is stopped out, you could bank on more upside to at least 1535.90 over the near term (60-min, A=1467.90 on 10/1 at 10:00 a.m. EDT). Here’s a GLD chart if you want to try the mechanical short but don’t trade futures. The bounce off Friday’s low would need to hit 141.54 (stop 143.26) to trigger the trade).
GCZ19 – December Gold (Last:1493.50)