I’ve been bullish on gold futures for a couple of weeks (see here). It’s been about a week since I wrote about it and it was up $17 today, so I thought I’d take an updated look at the chart.
The daily chart is below. It had a good rally off the late July low, reaching $1213.30 last Friday. Monday saw a breakout setup; Tuesday saw a profit taking selloff. Yesterday it opened higher and sold off. Yesterday’s selloff pushed the ROC indicator down to a buy signal level.
Clearing Fib resistance
Today had a good rally out of the Buy day setup. It cleared Friday’s high early in today’s session, then pushed over Fibonacci retracement resistance at $1215.00 (a 50 percent retracement of the selloff from the June 21 high). A close over that level would help the bulls.
Looking forward, the bullish MACD posture should support higher prices. The July 14 high at $1222.10 is the next rally objective and resistance. Clearing that could really help to extend the rally. If you’re not already long, watch for a pullback to get long or to add to long positions. The $1200 area should provide support on corrections.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Pingback: Gold Futures-Full Speed Ahead?