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I’ve been tracking something in gold that has me seriously interested right now…
And if this pattern plays out the way I think it might, we could be looking at a high-probability setup targeting all-time highs.
Gold is chopping around on the backside of a trendline, and I’m watching for either a higher low or a complete retest of the previous lows to create a double bottom.
Either scenario could produce one of my favorite technical trades.
If we get that higher low on the backside of the trendline test, the setup could run to symmetry and eventually all-time highs. But even if gold returns to retest the lows,
I’d consider getting even more aggressive — provided support holds and price breaks above the intervening highs.
How I’m Using Symmetry to Target This Move
The targeting methodology is straightforward. Measure from the base of the double bottom to the breakout high, then project that distance upward for the first target.
You can also double that measurement to establish a second extended target.
The key is confirmation. If support holds at either the higher low or double bottom level and price breaks through resistance, that would be my signal to add exposure. Until then, this remains an accumulation setup rather than a reason to chase price.
That distinction matters because patience is the hardest part. Gold may continue chopping around while the pattern develops, but that uncertainty can create an opportunity to build exposure before the breakout becomes obvious. I’d rather position methodically near support than wait for broad recognition and pay up after confirmation.
How I’m Structuring the Position
I’m approaching this as a medium- to long-term setup and using poor man’s covered calls alongside ratio spreads. Each offers a different way to manage premium while maintaining upside exposure.
With a poor man’s covered call, I can buy a longer-dated, deep in-the-money (ITM) call as a stock substitute, then sell shorter-dated calls against it. The long call provides directional exposure with less capital than owning the underlying outright, while the short calls can help offset time decay and reduce the position’s net cost.
Strike selection still matters because an aggressive rally can cap near-term upside.
A ratio spread lets me combine long and short options in unequal quantities to shape the payoff around a projected move. When structured carefully, it can reduce upfront premium and create strong returns near the target zone.
However, selling more options than I buy can introduce substantial risk if gold moves beyond the intended range, so sizing and defined exit rules are essential.
These strategies give me multiple ways to participate while the pattern matures, but neither replaces technical confirmation or risk management. The ultimate target remains all-time highs.
The question is whether support holds long enough to complete the setup — and whether you’ll have the patience to be positioned before the breakout arrives.
I’ll see you in the markets.
Chris Pulver
Chris Pulver TradingÂ
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.Â
P.S. Have You Heard About the Midterm Miracle?
It’s a pattern where stocks surge after the midterms, regardless of who wins… eight out of every 10 times.
Join Nate Tucci, Graham Lindman, Roger Scott, myself and Emily Turner at 10 a.m. ET on Wednesday and you’ll find out how to take advantage of this pattern!
