The tortuous pattern shown should be serviceable for now, although we have come to expect gold’s nasty, gratuitous dives to fall short of their ‘D’ targets — in this case 1740.00. The p2 secondary pivot (p2) at 1769.20 is another matter, however, and it should be used to attempt bottom-fishing with a tight stop-loss. Specifically, I’ll suggest managing the trade with a reverse pattern where a=1836.80 on 1/25 at 6:00 a.m. EST. Theoretical entry risk will be around $500 per contract, so this one is not recommended for novices. _______ UPDATE (Feb 4, 8:22 a.m.): Gold’s moves in either direction are 100% gratuitous but tradeable nonetheless. Although the April contract failed to dip to the secondary pivot where we’d planned to do some bottom-fishing, the current rally will become ‘mechanically’ shortable if and when it touches x=1826.60. With about $12,000 of theoretical entry risk on four contracts, this gambit calls for a deft ‘camouflage’ touch. Here’s the chart.
GCJ22 – April Gold (Last:1815.70)
