The futures have been slogging painfully toward an 1871.80 rally target that still looks like a good bet to be achieved. That implies a pullback to the green line (1829.40) can be used to get long ‘mechanically’ with a stop-loss at 1815.20, just beneath the pattern’s point ‘C’ low. A position with at least two contracts is suggested in order to allow profit-taking on an initial move from x to p= 1843.60. If the Feb contract thrusts higher from the get-go on Sunday night, I wouldn’t suggest chasing it. A second ‘mechanical’ entry might be possible nonetheless on a pullback from just above p2=1857.70. _______ UPDATE (Dec 7, 11:36 a.m.): A powerful rally this morning has pushed the futures to 1873.00, slightly above my target. If you followed my simple instructions, which were predicated on buying two contracts at the green line and taking a partial profit at the red line, you came away with a profit of $5,660. Please report results in the chat room so that I can better gauge interest in this trading vehicle. For now, let’s see how long D=1871.80 holds as resistance. The sooner it is dispatched, if it is, the more bullish. _______ UPDATE (Dec 8, 5:43 p.m.): Price action at p=1862.00 all but guarantees more upside over the near term to at least 1899.10. Round-number resistance will be an additional impediment, but if bulls can punch through both they should be presumed headed to at least 1967.00 (daily, A=1699.50 on 6/5). Here’s the chart. _______ UPDATE (Dec 9, 9:17 a.m.): You can buy a pullback to x=1843.40 ‘mechanically’ using a stop-loss at 1824.70. _______ UPDATE (Dec 9, 8:22 p.m.): In the chat room, I suggested scratching the trade because of belatedly perceived weaknesses in the A-B impulse leg. Those who’d opened a position would have done no worse than break even or lose a couple of ticks, although it would have been possible to exit with a profit of as much as $1100 per contract before the futures relapsed to within inches of the pattern’s ‘C’ low. For now, I’d suggest acting like you don’t care what gold does next, since it seems not to care either.
GCG21 – February Gold (Last:1840.90)