Gold Trade Note
Recommendation: LOOK TO BUY/THEN SELL SHORT HIGHER UP
Current Trend: Short-term down, but oversold. Med-term up.
Strategy: Go long a close above line 3. Then sell short from $1325 level.
(Daily)
- The dollar gold price has sold off over the past three weeks, and is getting ready for a short-term relief rally. Thereafter I'm expecting another leg down.
- Its short-term Stochastic is oversold, with a positive divergence, warning of a rally to come.
- Traders buy it on a close above line 3. (Line 3 is at $1305 on Fri 29th and it’s declining by $3.00 per trading day thereafter). More aggressive traders can buy on a close above line/s 2 ($1298.00).
- Look for a rally to $1318 initially to take half profits. Take the rest at $1325. A reversal down from there will be shortable for a drop to $1260.
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