by Rick Ackerman, Rick Ackerman.com:
We’ll shun jargon today and make it as simple as we can for bulls who have patiently stood by gold since it began its long dirge nearly two years ago. Looking at the picture below of Comex August futures, the weight of selling in recent months should be apparent even to those who know nothing about charts. It projects a potentially important low at 1219.40 that would imply a nearly 12% fall from current levels. That outcome, our worst-case scenario for the next 3-4 weeks, would become an odds-on bet if August Gold were to settle for two consecutive days beneath the red line at 1353.70. There would be no guarantees at that point that 1219.40, a major “Hidden Pivot “support, would hold, but we would be prepared to bottom-fish there aggressively in any event, albeit with a very tight stop-loss. More specifically, we would use our proprietary “camouflage trading” technique to hold theoretical risk as low as possible. If you would like more information about this method, which we use daily to trade and forecast, click here or consider taking a free trial subscription by clicking here.
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