The decisive breach of p=1755.30 last Thursday strongly implies a finishing stroke to at least D=1722.2o in the days ahead. As always, if that Hidden Pivot support is easily exceeded, the downside target of a bigger pattern would be in play. Meanwhile, the futures triggered a ‘mechanical’ short from the red line that in theory is still ‘live,’ since the downtrend has yet to touch p2 following the signal. However, if they were to rally to x=1771.90, that would activate a second signal to get short. The stop-loss would risk nearly $7000 on four lots, but I’d suggest cutting it down to size with a ‘camouflage’ trigger on the lesser charts. If you’re uncertain about how to do this, ask in the chat room when the trade gets close. _______ UPDATE (Sep 29, 9:40 p.m.): We used the 1722.20 target to get long near the low, which occurred at 1721.20. The bounce has produced a profit of as much as $2500 on four lots so far. Check my Trading Room posts beginning at 10:33 a.m. for details. _______ UPDATE (Sep 30, 6:49 p.m.): Usually a sharp rally in gold is barely worth a yawn, but I’m keeping an open mind this time. That’s because the same distinctive tone change that may already have caused stocks to top big-time may correspondingly launch the resumption of a bull market in bullion that we’ve patiently awaited for more than a year.
GCZ21 – December Gold (Last:1756.00)