October Gold’s latest relapse has brought it down to within easy distance of the 3317.70 Hidden Pivot support I’d said would provide a risk-averse buying opportunity. At the least, the target will have spared you the pain of trying to bottom-fish this brick as it began to fall from 150 points higher. The pattern I used to project a tradable low is sufficiently gnarly that a turn from very near the target is likely. Typically, I use ‘reverse pattern’ triggers to reduce entry risk to relative pocket change on trades that go against the trend. Since this tactic could require course corrections in real time, however, I can only suggest that you bottom-fish using your own risk-management methods. If the Hidden Pivot works, the futures should reverse from within no more than 4 to 5 points of 3317.70. If one assumes the turn will come from within a point or less of the target, it’s possible to fashion a trigger on the one- or three-minute chart that limits entry risk to less than $100 per contract.
GCV25 – October Gold (Last:3355.40)
