It is seldom a good sign when a trading vehicle triggers a ‘mechanical’ buy and then fails to reach the first profit-taking level. That is what has happened here, starting with the May 28 dip to the green line (x=4414.70). The subsequent bounce over the next day-and-a-half looked promising as it ascended toward the midpoint Hidden Pivot (p=4666.90), where we typically exit half of a position. Unfortunately for bulls, the rally fell about $30 short. Although we should always be prepared to implement a ‘dynamic’ or an impulsive trailing stop when a symbol we are trading approaches a target, in this case, the gap was too large to trigger that instinct. The subsequent relapse to below x would seem to offer an even better opportunity, but not in this case. The futures look too heavy for us to test our luck, and so we’ll simply wait for the seemingly inevitable breach of the pattern’s ‘c’ low at 4162.60. It is still possible to get long anywhere between ‘c’ and ‘x’ using a ‘camo’ trigger, but I recommend this only to subscribers who are familiar with the tactic. It is covered in detail in the Hidden Pivot Course I’ve made available free to subscribers.
GCQ26 – August Gold (Last:4365.30)