Actionable Trade-Alert
from Rick in the Trading Room
(Please check all related discussion in the room before you do any trades.)
Following a sharp run-up to record heights earlier in the week, October Gold has begun a retracement that looks likely to continue down to at least 3522.40 [corrected], the midpoint Hidden Pivot support of the pattern shown in the chart below; or to as low as 3433.90 if any lower. The pivot is a logical spot to attempt bottom-fishing with a tight stop loss. Specifically, you should use a reverse-pattern trigger of 3.0 points on the 15-minute chart if the futures fall into the range 3521.20=3522.50. (Thus, if the futures come down to, say 3521.60 and rally the requisite three points, you would enter on a 3524.60 buy-stop limit.) If you are unfamiliar with this tactic, you should use your own method of risk management to limit initial exposure to no more than $300 per contract. You can also paper-trade this one to familiarize yourself with the style of my recommendations.
