Following a sharp run-up to new record highs earlier in the week, October Gold has begun a retracement that looks likely to continue down to at least 3522.40 [corrected], the midpoint Hidden Pivot support of the pattern shown; or to as low as 3433.90 if any lower. The pivot is a logical spot to attempt bottom-fishing with a tight stop loss. Specifically, you should use a reverse-pattern trigger interval (TI) of 3.0 points or less on the 15-minute chart if the futures fall into the range 3521.20=3522.50. If you are unfamiliar with this tactic, you should use your own method of risk management to limit entry exposure to no more than $150 per contract. _______ UPDATE (Sep 5, 4:04 p.m. EDT): The futures dipped no lower than 3544 before taking off again like a bat out of hell. This left our niggardly bid choking on dust, but not without heightening our awareness that getting aboard to augment long positions will require more aggressive bidding. In the meantime, you should use 3719.70 as a minimum upside projection for the near term. A pullback to 3448.90, however unlikely, can be bought ‘mechanically’ with a stop-loss at 3358.60.
GCV25 – October Gold (Last:3611.00)
