Gold Trade Note

TWEET THIS TRADE

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 29^th 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.

TWEET THIS TRADE

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