UPDATE: Gold's former breakout line becomes support!
This is an update of my prior call in gold which worked out about as well as a call could have.
After ricocheting from the illustrated overhead resistance line twice since our last trade, gold is now going in for a third test as I write this. While it may not break this time, we should stay on watch for a potential breakout as a breach above this line probably has the potential to eventually send gold to its former highs.
Fundamentally, there still remains good reason to believe gold will go higher. The market rallies everyday, but with it we are seeing higher inflation. Pair that with a Fed that insists it is on hold for the long run and it's highly likely that we will see higher asset prices all across the board (gold, oil, other commodities, equities) until the Fed decides it needs to tame inflation.
Let's buy gold on a break above the overhead resistance line illustrated above.
Target 1: 1316
Target 2: 1325
Bonus Target 3: 1345
After ricocheting from the illustrated overhead resistance line twice since our last trade, gold is now going in for a third test as I write this. While it may not break this time, we should stay on watch for a potential breakout as a breach above this line probably has the potential to eventually send gold to its former highs.
Fundamentally, there still remains good reason to believe gold will go higher. The market rallies everyday, but with it we are seeing higher inflation. Pair that with a Fed that insists it is on hold for the long run and it's highly likely that we will see higher asset prices all across the board (gold, oil, other commodities, equities) until the Fed decides it needs to tame inflation.
Let's buy gold on a break above the overhead resistance line illustrated above.
Target 1: 1316
Target 2: 1325
Bonus Target 3: 1345
Trade active:
The line has been broke, trade active. Using 1299 as a stop.
Comment:
Ripping here to target 1.
Trade closed: target reached:
Target 1 reached. Keeping this on for targets 2 and 3.
Comment:
Target 2 hit today.