Gold has been absolutely demolished in 2018, much of this having to do with President Trump imposing tariff's on China. This in fact has led to a nearly 6% devaluation of the Chinese Yuan. Why does this matter? China is the world's #1 producer of Gold and currently produces roughly 500 metric tons of gold per year. As you could imagine, Gold and the Chinese Yuan have a positive correlation, meaning they both move in the same direction in price.
I have identified major weekly support on gold that will likely result in a $60 to $100 movement to the upside, if not more.
I am a firm believer in buying low and selling high, and this time is no different. While Gold is extremely oversold, and can remain oversold for some time, the risk reward favors buying the major support levels dating back to 2013 and 2015. The last time Gold was this oversold it bounced from a low of $1190 all the way to $1442 before hitting it's peak. What was even more impressive was that it only took eight weeks to travel roughly $252 from its low.
I can not stress how rare an opportunity of this type presents itself. The key support levels to watch for are $1206, $1190, $1180, $1170. As long as Gold does not close below $1150, I would be extremely bullish.
Personally I am going to add to my position at each support level, placing my larger buy at the lowest level. This trade is perfect for a 2-3 month hold. I am a swing trader and love finding trades that I can stay in for a longer period of time.
I have some price levels in mind where I am going to be taking some profit off the table, those being $1265, $1290, $1325, $1360. Each one of those prices are a key resistance level for gold. My goal is to trail my stop loss for the entire move up throughout a two to three month period.
I have identified major weekly support on gold that will likely result in a $60 to $100 movement to the upside, if not more.
I am a firm believer in buying low and selling high, and this time is no different. While Gold is extremely oversold, and can remain oversold for some time, the risk reward favors buying the major support levels dating back to 2013 and 2015. The last time Gold was this oversold it bounced from a low of $1190 all the way to $1442 before hitting it's peak. What was even more impressive was that it only took eight weeks to travel roughly $252 from its low.
I can not stress how rare an opportunity of this type presents itself. The key support levels to watch for are $1206, $1190, $1180, $1170. As long as Gold does not close below $1150, I would be extremely bullish.
Personally I am going to add to my position at each support level, placing my larger buy at the lowest level. This trade is perfect for a 2-3 month hold. I am a swing trader and love finding trades that I can stay in for a longer period of time.
I have some price levels in mind where I am going to be taking some profit off the table, those being $1265, $1290, $1325, $1360. Each one of those prices are a key resistance level for gold. My goal is to trail my stop loss for the entire move up throughout a two to three month period.
There is a possibility that was backtest the $1215 support, however I would consider this a great buying opportunity.
Gold has been suppressed all year due to USDCNY and with the price action we are seeing currently, a reversal is at hand.