Buy a further dip in Gold for long term protection
Product: Spot Gold/USD
Time Frame: Long term
Trade: Buy in front of 1,300 USD/oz
Stop: A clear break of 1,150 USD/oz
Targets: 1,620 USD/oz, 1,800 USD/oz & 1,920 USD/oz
The breakdown in prices of spot Gold looks to have caught a large number of investors on the hop!
The safe-haven status has been shaken but as a long-term investment - it is the best of a bad bunch.
The very fast and high volume move on Friday through 1,525 USD/oz support level has continued into the start of this week and looks to have more room to run.
On a long-term basis this was well overdue but we believe this to be a corrective sequence which should see prices return to the safe haven status and lofty heights of 2011 before too long.
With this point in mind we look for a good risk/reward level and opportunity. The obvious chart point would be at or near 1,300 USD/oz, which sits as a 50 percent retracement of the 2008-2011 move, being 680-1920 USD/oz.
Risk would be a clear break of the 61.8 percent fib retracement level of 1,150 USD/oz, although I will be tempted to add to longs in front of here.
Once the trade is initiated and the first target has been achieved the risk level should be raised to the cycle low.
A clear break of the 1,150 USD/oz key support level.
Daily break of key support
Long term 50% retracement and Fib support
Non-independent investment research
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