Gold is in an absolutely beautiful formation. We are at the apex of a falling wedge on the medium time frames and in the beginning of a bull market on the longer time frames. Gold will go to 18000 an ounce in 6 months if this bull trend continues in a parallel channel....it could go higher than that if it breaks out exponentially. What's so wonderful about the apex of a falling wedge is it offers a low-risk entry. If we close a week below the wedge, assume we're headed to 1370 and bail for the short term. The Reward-to-risk ratio is extremely promising. We also have bullish divergence on the Twiggs Money Flow indicator....in a bull market, this is a reliable buy signal on a bounce from a lower swing low, which we are seeing as we speak on the daily chart. Seeing the fundamentals supporting a near-future gold bull run as funds exit stocks around the world and seek safety make this not only a short-to-medium term play, but even a promising multi-year buy opportunity. If one was profitable in the US equity market long-term and looking to secure profits, the question should likely be "how much" gold is appropriate for a portfolio, not "should I own gold?"
The bad thing about a falling wedge, is the apex only happens once. This could be THE DAY to buy gold.
My trade ideas are NOT investment advice.
The bad thing about a falling wedge, is the apex only happens once. This could be THE DAY to buy gold.
My trade ideas are NOT investment advice.
Trade closed: target reached:
Hit my 1st target (1580) and exited. Will look at re-entering on a dip, but when my long-term channel trades go parabolic in a matter of days, I take profits.
Trade active:
RE-ENTERED. Looking for weekly close above 1585 to confirm continuation. Tighter stop here; comfortable buying more lower (would love 1450-1485)
Comment:
Forgot about this idea; I got trailed out of my 2nd entry in Feb for a small gain. I ALMOST left an open order at 1450, which would have filled, but decided to re-allocate to bearish equity trades. I'd like to see an inside day , followed by a breakout over that day's high to return to gold for a swing. I still prefer it to equities for 2020.