The pattern shown in the inset sucks for trading because the ‘a’ and ‘c’ highs are nearly equal, and because the a-b leg did not surpass any prior ‘external’ lows. That’s why I’ll suggest paper trading this one unless you know how to craft a small-pattern trigger (aka ‘camouflage’) that can reduce the $8200 entry risk to $270 or less per contract. However, merely spectating should help us determine with greater confidence whether the soul-crushing tedium of the last two months is more likely to give way to a breakout, or a breakdown. Regardless, if the August contract touches the green line (x=3394.70), that would trigger a theoretical ‘mechanical’ short, stop 3477. If the hypothetical trade produces a profit, that will imply that bears have at least a small edge at the moment. ______ UPDATE (Jul 7, 1:45 a.m. EDT): The futures will fall to at least 3301.80 before they can find a foothold. Bottom-fish there with a tight rABC trigger if you are familiar with the tactic. Otherwise, I’d suggest spectating.
GCQ25 – August Gold (Last:3317.20)
