Last week’s powerful surge made the futures an easy bet to reach the 2724.40 target we used to stay confidently abreast of the trend. The target, a reverse pattern Hidden Pivot resistance, is shortable, preferably if you know how to set up a small-pattern (i.e., ‘camouflage’) entry trigger. If the rally easily exceeds d=2724.40, use 2769.00 as a minimum upside objective, and expect it to work precisely. It is calculated by sliding ‘a’ down to the 2580.80 low recorded on September 18. That is what I refer to as a ‘locked’ point ‘a’, since there are no lower lows to be found that would still yield a reverse pattern. _______ UPDATE (Nov 25, 1:42 p.m.): Something has changed, since nasty old Mr Slammy has been showing up too frequently in the last month. Today’s gratuitous pounding triggered a ‘mechanical’ buy at the red line (p=2656.10) that we will shun because of gold’s punk behavior of late. The trade is holding so far, since the intraday low at 2617.90 is $1.30 above the textbook stop-loss. However, I’ll recommend bottom-fishing only at the green line (x=2598.80), provided you understand the trade and can manage entry risk tightly. Also, don’t expect the bounce to reach the D target at 2770.7. This one should be played for a one-level gain, from x to p, since it’s possible an important top was seen with October 30’s print at 2801.8, inches from a key target I’d billboarded months earlier.
GCZ24 – December Gold (Last:2718.20)
