Gold back to its recent highs...and beyond?
Gold has big resistance at 1365-90. We know that. It's been pretty well flagged by yours truly on here. We got up to here a few weeks back and failed again.
We appear to have bottomed for this pullback though, during last week's turmoil in the markets! We got down to 1308, which has been a pivotal level in the last few months. We also had a Fibonacci support at 1317 and although we did see dips through here they were always followed by swift recoveries.
So I want to be long, as it looks like we're going to head back to 1365.
As you can see from our monthly chart a move above 1365-90 would give a BIG buy signal so I would want to hold on to some longs if/when this breaks as we can set "bigger pciture" targets at 1484, maybe even 1588, although these would take a while to reach!
Management and risk description
We are risking $10 to make $37 even if we only hit the first target. When we get above 1350 we will move the stop to entry.
Entry: Buy at 1332 and a dip to 1324
Stop: Below 1318
Targets: 1365 for a short-term trade. See above for bigger picture targets for a longer-term trade.
Time horizon: 2 weeks to reach 1365.
Chart 1: Daily Candlestick
— Edited by Clare MacCarthy
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