Gold Is Back On The Table
Last Friday I talked about gold getting ready for a break-out to the upside, which – for reasons explained in my post – I happened to be a wee bit skeptical about. As I always love to quote myself here’s the final assessment I offered:
“To be honest it all looks way too easy to me. The Yen has not nearly fallen as much as gold has punched higher over the course of this year. And that’s fine of course – there is never a 1:1 correlation on the very long term.
However with the Fed back to its old POMO tricks you can color me a bit skeptical. I would very much like to buy a clean drop to GC 1485 (where the ST panel shows us a diagonal support line) and perhaps it would even be good for a short term punch higher.”
Now we actually didn’t get a drop to 1485 we got a ride to 1520 which was completely reversed in yesterday’s session. JUST the type of gold bugs honey trap I had been worried about.
Of course on the heels of this massive bitch smack we may be looking at a juicy entry opportunity. It’s not guaranteed, as nothing ever is when it comes to trading, but I propose that the odds of a [sustained] punch higher are much better than they were last Friday.
Which means I’m taking out a long here with an ISL < GC 1482. It’s still possible we first drop back to GC 1475 but if that happens I’ll be looking out for a possible floor pattern.
Gold is a relatively small market so pretty much anything can happen at any time. Place your trades/exposure appropriately.
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