Gold has traded as high as 1607.90 tonight, a tad shy of the 1613.30 level needed to recoup half of Friday’s savage, $98 plunge. The futures were a risky ‘mechanical’ buy on Friday — a matter of catching the falling piano. — when they hit p=1594.90 (see inset) on the way down. We passed up the trade but may consider testing the water with another ‘mechanical’ set-up if gold falls anew to X=1526.70, the green line. The 1731.30 target remains viable despite the viciousness of last week’s selloff, but we’ll give bears wide berth until price action turns a little more subdued. ______ UPDATE (Mar 5, 4:20 p.m.): No change: I remain bullish, with a 1731.30 target. Stay tuned to the chat room, since trading this vehicle requires close attention to the one-minute chart. Here’s one that is relevant at the moment. _______ UPDATE (11:18 p.m.): Minutes after I posted this pattern in the previous update, its ‘d’ target at 1669.40 caught the low of an $8 rally within two ticks. The trade could have been worth as much as $3200 to anyone who bought there. Not bad for three hours’ work.
GCJ20 – April Gold (Last:1673.00)