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GCJ20 – April Gold (Last:1663.50)

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Gold continues to bide its time, coping with seemingly limitless strength in the stock market.  Precious metals have held up well, considering that even two-day selloffs on Wall Street are becoming an endangered species. The chart shows nearly a month’s worth of tedious oscillations punctuated by a couple of gratuitous feints higher. One of these days buyers will catch fire and complete the pattern shown in the chart, pushing this vehicle to a target at 1690.20 flagged here earlier. In the meantime, unless there’s a dip beneath the 1542.80 point ‘C’ low, our minimum upside objective will remain p=1616.50.  We can trade it from either side of the market almost at will, as a $2200 scalp demonstrated on Tuesday, but this will require more patience than most of us have got. ________ UPDATE (Feb 19, 7:01 p.m.): After rallying sharply over the last two days, April Gold has stalled just 60 cents from the 1616.50 target we’ve used as a minimum upside projection. Two consecutive closes above it would put the 1690.20 target also flagged above in play. The move has been easily tradeable, even by doubters and nervous Nellies, using mechanical set-ups like this one. ______ UPDATE (Feb 23, 10:14 p.m.): The little sonofabitch exploded higher on the opening bar tonight, recording a peak at 1684.10 that missed my longstanding target by just $6.10. How could you have exited on the fleeting spike? Check out my posts Sunday evening in the Trading Room for the simple secret of the ‘dynamic trailing stop’.

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