Today was another positive move up for Gold as the precious metal closed the day at 1269.9, up 6 points from the opening. Great news for our long Gold trade, for sure! Equally encouraging is that the has finally broken above the 20 line, confirming the upward trend.
The midline on the BB is now at 1284.5 and it would appear that Gold will hit that level before the end of the week. Of course, I am looking beyond the midline for this next wave. With the 1300 level right at the 23% fib level, that is and remains my first target to take profits.
Let's take a quick look at the weekly chart to get a longer term perspective on this move up. As you can see below, the cycle is not yet confirmed by the because the green signal line has yet to cross over the magenta price line. Until it does, we do not have confirmation that a longer term is in play. I'll definitely be keeping an eye on it!
The GoldBands strategy works on many other markets besides Gold . Here is the for Natural Gas , NYMEX:NG1! . As you can see, Natural Gas is clearly cycling down. I entered a short trade 2 days ago. My target is for price to descend to the lower for what I call a coast to coast trade. You can see that the last 2 down cycles were stopped at the midline before moving back up so I am looking for a deeper correction this time.
Until next time, Safe Trading and Protect your Profits!