The rally has been unimpressive, but it is inarguably getting the job done. We’ve been using the pattern shown, with an 1873.90 target, to stay on the right side of a challenging trend. It has helped us to avoid disappointment whenever gold dives from somewhere shy of a minor target, but also to spot money-making opportunities on the way up, including a recent $8000 winner that had been explicitly detailed here. A similar opportunity would be signaled via a ‘mechanical’ buy if the futures were to fall to p=1813.50 (the red line in the chart). The appropriate stop-loss would be at 1793.30, implying $8,000 of entry risk on four contracts, but we’ll find a less stressful way to get aboard if and when the opportunity comes. ______ UPDATE (Jan 26, 9:16 p.m.): If today’s gratuitous, stage-managed plunge continues, it will trip a ‘mechanical’ buy at x=1783.20, stop 1752.00. Don’t bother with this one unless you are proficient enough with rABC ‘camo’ setups to cut the implied $12,000 entry risk on four contracts to no more than a tenth of that.
GCG22 – February Gold (Last:1813.70)
