Gold about to re-test a very strong support line!
Updated
Gold has been extremely out of favor lately as stocks have rallied and market participants seem to be unconcerned with inflation. With gold stuck in a downtrend since the middle of February, I have been lucky that my last few calls have worked out (with the exception of the most recent one).
Once again, however, we find ourselves at an interesting level. In the chart above, gold broke out with fervor in mid-January. The line that it broke out from has remained as long-term support -- being successfully tested twice in March, which we were able to play for a very nice trade on the long side. I believe tonight in the futures market we may have that chance again as we near the buy zone that I have drawn above as 1271-1268. Any hard breach of the trendline should be considered a time to stop out.
Buy gold between 1271-1268 (or anywhere near the trendline)
Target: 1295 (or anywhere near the overhead resistance line)
Stop: 1265
Once again, however, we find ourselves at an interesting level. In the chart above, gold broke out with fervor in mid-January. The line that it broke out from has remained as long-term support -- being successfully tested twice in March, which we were able to play for a very nice trade on the long side. I believe tonight in the futures market we may have that chance again as we near the buy zone that I have drawn above as 1271-1268. Any hard breach of the trendline should be considered a time to stop out.
Buy gold between 1271-1268 (or anywhere near the trendline)
Target: 1295 (or anywhere near the overhead resistance line)
Stop: 1265
Trade active
Trade closed: target reached
Target reached, but gold has broken out, so it's okay to stay with this trade.
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