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.
Gold trading plan – hitting resistance and small reversal.
The next step down would be the support at 1322 that would keep gold in the uptrend from the bottoming pattern that gave shape to this new up trend.
Two areas of resistance until we can break to new highs, 1370 and 1385. Breaking the support at 1304 and psychological support at 1300 could bring gold down to the next Major fight line at 1259.
Gold trading plan based on guessing central bank policy and outliers.
Side note, All the Central Banks including the FED are destroying their currencies at an accelerated rate. Dollar strength could push this down if there is an outlier in Europe in particular. Italian banks, Spanish banks and now talk of Frexit, could destabilize the Euro even more and we could see Dollar strength. This is not to say that there could be a correlated move on gold too as physical demand is starting to effect the futures markets which are leveraged.
Brexit is coming, Gold on the other hand said “NO BREXIT” but instead has a BULL TRAP.
A fascinating shift in the market where physical gold is beginning to lead the futures market. The demand for physical Gold has been increasing over the past few months, leading to support increasing as gold is reaching new highs. The key is in the charts and we can see that there is a bull trap that was sprung recently off of the highs. Let’s check the charts.
The Monthly gold chart shows the major down trend with a declining wedge. The past 3 months have consolidated between 1210 and 1300. This past week we saw price head to a new high at $1318 an ounce. The past three months volume is staying pretty high and consistent.
We are presently below the 200 moving average in Red. On a long term chart this is the key for bulls being in control and getting out of this bear trend. The finish of this trend could occur around some Outlier. The BREXIT seemed like it could be the stimulus which would send us to these new highs and break through the monthly chart but did not pay off as price came $50 off the highs.
The weekly chart in Gold also sets up nicely with some tells.
Bull TRAP reveals itself in price failure over 1300 on reversal from high and increasing sell side volume.
Gold prices above $1300 an ounce were met with selling as price moved towards last weeks highs. Buyers could not hold their ground as increased sellers moved price lower and then a move of $36 an ounce down into the pre Brexit vote coming tomorrow. If this isn’t a bull trap, then we might see this resistance shattered and a move to 1363-65 area and a further move to 1385 then 1450 if there is a BREXIT. As of now the buyers have lost their steam and we could see a test to previous swing lows at $1200.
Follow up from BREXIT vote count, looks like the Bull trap was actually a set for breaking to new highs. We can’t tell yet.
Here is the follow up chart.
Entry at 1260.