GCM26 – June Gold (Last:4511.71)

Friday’s dive added to the insufferable tedium that has characterized the bullish pattern shown. Its 5144 target has been a guiding feature for two months, not that that has helped much.  A strong dollar has been weighing on gold and will likely get worse, according to some prognosticators. Bullion prices have endured this pressure before and are likely to do so again, but it could mean the 5144 target will be a long time in coming. In the meantime, a pullback to the green line (x=4382.40) should be regarded as a good opportunity to go bottom-fishing. The huge, 4128.40 stop-loss demands a ‘camo’ trigger if you are game, since the ‘textbook’ stop would entail entry risk in excess of $25,000 per contract. Using Hidden Pivot tactics, you should be able to reduce that by at least 95% to less than $800. ______ UPDATE (May 22): The futures spent every moment of last week vigorously screwing the pooch in a tight range above x=4382.00.  There are no changes or additions to the analysis and guidance above.