Lots of markets had breakout setups today-let’s take a look at one of them to see how to trade them. Below is the Trade or fade report for December Comex Gold. I’m not showing the daily bar chart, but yesterday was an inside day, with the narrowest range of the past couple of weeks. It was also a doji bar, and Monday’s range was 70% of Friday’s. This meant that today I was looking for a breakout, directional move in Gold. Specifically, I was looking to buy a break over first resistance at R-1, or sell a break under first support at S-1.
The Trade or Fade Report for Dec. Gold
The next chart is a 10 minute intraday chart for Gold today, with the pivot and resistance areas shown, so we can see how the trade developed. It traded through the R-1 long entry point about 6:45 this morning, trading up to a high of 746.50. A little after 7 AM it dropped back under R-1, then back over, giving a second opportunity for a long entry. Note how around 9 AM it came back to the breakout point, which then served as resistance. It then proceeded to trade to the first profit objective at R-2 (price 755.80) around 9:40 AM, for a profit of approximately $1580. If you wanted to hold on for more, the next proift target is at R-2 or 777.40.
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Dec. Gold 10 Min. Chart
