Good Evening Dynamic Traders
We’re in the final month of 2011 – I’m still finding it hard to believe! It’s come around so quick.
I wanted to end the short trading week with a quick update on Gold. The last Gold blog we could see price had reached a support cluster and odds suggested a bounce up. Price did just that and so far this week has been a bullish one. Price is squeezing between the trendline/support below and resistance above – a break above is our preference for a trend trade.
As we’ve also ended another trading month, I wanted to zoom right out into the monthly timescale to give us a longer term perspective. We can clearly see the trend has been heading north forever and in a noticeably linear fashion, without any deep pullbacks. I’ve highlighted the recent and pretty sizeable tramtrax formation, which could suggest a possible reversal/correction is on the horizon.
Looking back at the daily chart, it’s no wonder price is in a bit of a range right now – the longer-term traders are fighting it out. For the safer option, a break of the major figure at 2,000 would be the preference for a continuation, but for those who are more risk savvy you’ll be waiting to see which way prize squeezes out.
Remember not to get caught up with all the hype and news – focus on price.
Have a great weekend folks.
Smart Trading.
Sonia Molina
Tags: gold
