We’ve been targeting the $1,150 level in Gold and price achieved that key target this week.
What’s going on and what’s the next trade plan for gold now that this one was successful?
Let’s see and plan it!
In the Weekly Member Reports, I’ve been calling for a third “counter-trend rally higher” toward the $1,150 target like the two we saw earlier in 2016 (note the green arcs).
Price – as expected – moved “up away from” the $1,060/$1,075 price pivot toward the minimum target $1,100 and now the fuller upside target into $1,150.
To be clear, it’s the area just above the falling 200 day Simple Moving Average (red) and the blue hand-drawn trendline.
On the prior two upswings price broke gently above the 200 day SMA only to collapse back under it, continuing the longer term downtrend in price.
Our trade plan – which I’ll go into more detail this weekend for members – focuses on the $1,150 level and the likely departure “away from” this key price pivot level.
Simply stated, a “third repeat” has us bearish against the $1,150 target, playing lower toward $1,100 while the “this time is different” outcome has us bullish on a continued breakout beyond $1,160 toward $1,200.
Whatever other techniques you’re using to trade gold, focus on the $1,150 pivot and the updated upper/lower targets.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade