December Gold ended the week breaching, then closing beneath, a 1660.90 midpoint support associated with a ‘D’ target at 1497.20. Before we sink into despair, let’s use the lesser pattern shown in the inset to leverage a less severe outcome. The chart shows immediate downside potential to 1641.00, or to 1620.00 if any lower. Both are worth bottom-fishing provided you can set up the trade with initial risk of less than $150 or so per contract. There is also a possibility that Friday’s 1646.60 low will prove to be an important bottom, although I doubt it. A 1685.10 print by mid-week would change my mind, but let’s not hold our breath. _______ UPDATE (Sep 28, 8:17 a.m.): The gold trade I posted in the chat room last night canceled itself when the prospective ‘c’ anchor dropped more than a desirable few ticks beneath D=1628.70. The eventual low at 1622.20 was easily tradeable and came at 3:30 a.m. from this pattern, one that I should not have missed. I do not think sellers are done. Here is a quite bearish pattern with a 1597.50 target and a midpoint support that was breached last night. The pattern is gnarly enough that it should work well for any purpose, whether bottom-fishing or getting short ‘mechanically’.
GCZ22 – December Gold (Last:1637.40)