Buyers blew away a Hidden Pivot target at 1782.30 that we’d been using for a while and June Gold now looks bound for at least the 1832.20 target shown. The futures are all but guaranteed to get there if they can close above 1777.40 for two consecutive days or reach 1800.00 intraday. We can use the pattern shown to trade the rally confidently. Most immediately, that would mean placing a ‘mechanical’ bid at 1711.11, the green line, stop 1670.60. A somewhat riskier trigger could be fashioned using p=1751.50, stop 1724.60, but I’d suggest paper-trading this one if you are unfamiliar with ‘mechanical’ entries. Even if you know what you’re doing it would be best to convert the mechanical signal into a less risky alternative. Tune to the chat room for further guidance if the opportunity gels. Let me also mention, just to be on the record with it, that there’s another rally target at 1886.20 that comes from the continuous daily chart. The futures would need to push decisively above the 1777.40 ‘secondary’ pivot referenced above to imply that the higher number is a done deal. Here’s the chart. ______ UPDATE (Apr 15, 9:44 p.m.): A buy at the red line (see above) never got airborne, but a ‘mechanical’ bid at 1711.10 still looks promising — the moreso if it occurs early in the session. ______ UPDATE (Apr 16, 8:30 p.m.): Here it comes! The best ‘mechanical’ trades will often test our nerves to the limit, since they trigger at the end points of brutal countertrend moves. This one would go ‘live’ at 1711.10, stop 1670.60, for a shot at 1751 or higher — that’s risking more than $4,000 per contract — but I’d suggest watching from the sidelines if you are merely curious about how well they work. The rules behind the trade are simple, but gaining the confidence to do them takes plenty of paper trades.
GCM20 – June Gold (Last:1730.60)