Perhaps I should take it easy on the eggnog but heck I’m throwing this one out gratis:
If you caught that NLSL on gold you’re probably feeling mighty smug right now. Well, wipe that silly grin off your face and start cashing out – I think the easy money is over for now. That lower 100-day BB line should be good for some support, at least on a short term basis.
Medium term only an immediate push above 1636 before Friday would spare the shiny metal a visit of the 1500 mark – at least that’s what my weekly NLSL is showing me right now. So, I expect a bit of push back here but I don’t think gold is completely done yet.
Of course the astute steel rat may already have considered the long term implications here: IF we really drop toward 1500 then that would mean we’re getting very close to gold’s monthly NLSL at 1478. That would be a great opportunity to take on long positions – or short contracts if it looks like we’re going to fail. Either way – if this goes according to plan it ought to be a lot of fun. Let’s keep our fingers crossed we’ll get that setup and thus an opportunity to show the gold bugs how it’s done.
UPDATE 2:15pm EDT: I just realized that one of our favorite commodities setups may be ready for the plucking – subs only however:
More charts and cynical commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
Remember that cocoa trade we were all waiting for? And how it ramped up hard after touching 1200? I told you guys to not chase this up – and now you know why. Well, this may be as good as it’ll get, folks – we just descended back to that first NLBL at 2154 and I think we can be long here as long as we don’t plunge through it. I also see a bit of hourly support here as we are testing the 100-hour SMA right now – ideally we want to push above it in the next few hours.
If we do fail this NLBL then I would not want to be short – I would prefer to simply go back into cash and to wait for further instructions.
Copper also looks like a good long here – I would prefer 3.23 but whether we’re getting it is another question. If you prefer EFTs you can also trade NIB which is not a par match but close enough for govmint work as they say. Happy hunting!