December Gold got slapped down hard on Friday after climbing to within inches of the 4819.30 target (see inset). Price action at p=4417.50 suggests the target is likely to be reached, although penetration was not sufficiently decisive to guarantee this. Regardless, we can trade this situation with a ‘mechanical’ bid at the red line p=4417.50), stop 4283.50. But unless you know how to craft a ‘camouflage’ trigger to initiate the trade with relatively little risk, I am not recommending it. Merely paper-trading this one can tell us whether the bull trend begun from July’s 4015 low is still intact. If so, the stop should hold; if not, we should be ready to attempt the same gambit at the green line, although predicated on a rally of just one level, from x to p.
GCZ26 – December Gold (Last:4530.2)