GOLD TRADE ALERT (3:00 pm EDT)
Even though gold and silver charts are giving us mixed bullish and bearish signals (see yesterday's blog), there are several technical factors setting up right now in gold that could make a strong rally imminent. Gold prices have been falling and today dipped to $1244 before closing close to the top of the day's range ($1250). This is bullish behavior, and we are in the center of this week's reversal zone for gold. We are also close to a support area around $1234 - $1240. There are several other bullish factors influencing this market now including the strong support of COT charts that I mentioned in yesterday's blog. For these reasons, I am going to enter a long position in gold right now. We can set a close stop loss for this trade on a close below $1234 (which would be about a 1% loss if triggered). There is some risk here as it is still possible for gold prices to fall. The close stop for this trade, however, minimizes this risk and in my opinion makes this a worthwhile trade as the potential rally could be strong. Silver also has the potential to rally now, but silver's chart is a bit more bearish than gold's at the moment, and silver's high volatility could lead to greater losses if these metals turn south. I am going to stay out of silver for now and enter a long position in gold today.
Even though gold and silver charts are giving us mixed bullish and bearish signals (see yesterday's blog), there are several technical factors setting up right now in gold that could make a strong rally imminent. Gold prices have been falling and today dipped to $1244 before closing close to the top of the day's range ($1250). This is bullish behavior, and we are in the center of this week's reversal zone for gold. We are also close to a support area around $1234 - $1240. There are several other bullish factors influencing this market now including the strong support of COT charts that I mentioned in yesterday's blog. For these reasons, I am going to enter a long position in gold right now. We can set a close stop loss for this trade on a close below $1234 (which would be about a 1% loss if triggered). There is some risk here as it is still possible for gold prices to fall. The close stop for this trade, however, minimizes this risk and in my opinion makes this a worthwhile trade as the potential rally could be strong. Silver also has the potential to rally now, but silver's chart is a bit more bearish than gold's at the moment, and silver's high volatility could lead to greater losses if these metals turn south. I am going to stay out of silver for now and enter a long position in gold today.
RSS Feed