Gold trading update – October 14 End of trading day.
This week gold stayed in a consolidated range at the bottom of a sell off which occurred last week. This happened to co inside with the Chinese holiday and therefore all the Gold bugs starting screaming conspiracy! But, as real traders we know that there are tells in the market when they are given that we can follow. In the Money Maker Edge system we look for commitment in direction of the market. The market clearly gave us the signal before the fall that buyers were loosing strength and sellers could take the direction away.
We have three lower highs with decreasing volume. There is no commitment to take this higher and each swing is shallower on less volume. Once price breaks through the support at$1310 you can see sellers piling on and a very volatile sell into the next support at $1266 support. The consolidation zone around here in light blue is where buyers and sellers have been trapped. The $18 consolidation zone has given no tell as to which direction to watch for the break out.
Gold Trading – Buyers in Control
If buyers move in off this support I am watching for this to return to the 1286-1300 area. It could be a choppy start to this move before we see any commitment. Don’t risk too much for this move, buy when you see commitment and continue in the direction of the trend.
Gold Trading – Sellers in Control
If Gold sellers move in and take this through the support the next area of support is 1230, then 1210 and then 1180 as an equidistant move from the previous sell off. You will notice that the volume is quite consistent in this area with no one taking the lead.
Gold Trading – Consolidation a warning.
When gold is in a consolidated pattern like the blue zone, watch out for traders to lure the novices in by using a head fake to get the trader to enter at the breakout above resistance or below support. This could be a risky trade as the market might reverse and then blow through your stop in the opposite direction. For instance, breaking above the 200 Moving Average and then immediately reversing and coming back into the consolidation Zone taking out your stops.
Take note of the Red Arrow Resistant Trend line, this is where I am looking for this market to go if buyers do get control. It will also be the area where sellers could move in and the next consolidation zone could occur.
Gold markets sold off with a momentum pushing through to lower levels.
As mentioned earlier if price can’t break this lower high I was looking for a move down to 1256. Seems we are close. The resistant trend line held, the lower highs showed less commitment on buyers side and then the sellers challenged the 1311 support and broke through.
Gold markets can continue lower
There is strong support at the 1269-70 area, but watch tomorrow as dollar continues it’s upward battle. Seems people have really sensed the oncoming collapse in the Euro and the move to buy dollars is on again.
Gold next area of support is 200MA, then $1220.
We shall see tomorrow. Would wait for this to consolidate before going in on large positions. Some physical gold buyers will call this a buying opportunity, Watch and see. Trade what you see, and always manage your risk first. Wait until you see the gold markets turn, trying to pick the bottom is very risky.
Trading the Gold Markets can be very volatile, if you aren’t used to trading it, stay out. Don’t put your capital at risk.
Buy Gold – using NUGT JNUG day trading entry on a swing position
Buy Gold before Federal Reserve meeting. I wanted to pick up a swing trade in gold with out having to go into a futures contract to lower my exposure on this trade so I picked NUGT. This is the trade on NUGT at 18.39 on 9-20.
Looking for a target of 21.50 and long term target of 24.50 with a stop at 17.28
This is a swing trade but entered on a day trading postion with initial risk of .40 a share.
Trading is very risky pre fed
This could be knocked out on the open, if there is a major sell in gold positions or a rally on the dollar.
Technically we have hit support after a move down from about $25. This support seems to hold today so looking for a bounce up on the open. We shall see.
Buy Gold with an emphasis on the miners. JNUG showed a very low risk entry for my system.
Another BUY GOLD related stock. JNUG the junior gold miners.
This also showed major support testing down to 17.45 during the trading session. With a major stop at 16.98 and a target of 21 and 25 this was a risk reward ratio that I was looking for.
The inital risk on the entry was only .35 per share so this was another Gold buy related to a large move down from 25.42 to a major support around $17 then a bounce.
Pre Federal reserve trading is very risky, do not attempt this without experience and knowing how to place stops. Stops are not guaranteed with stocks and you could risk a lot on this trade.
BOJ and PRE FED sound like a train wreck for the markets but this pre presidential race Fed meeting could be quite dovish. Although the head of the Federal Reserve or the American Banking Cartel, is chosen by the President, they are supposed to be impartial in political races. One of the reasons this will be a dovish session will be keeping the markets stable through this election period, supporting Obama and therefore Clinton.
Today could give us direction either to support markets and maybe set in the move to break the highs in S&P 500 or take it down for a correction. My guess is more consolidated trading, move back up and chop to new highs.
We shall see.