Gold played out exactly as planned and squeezed up to the 0.618 Fib Extension around $2,070 taking out all the short sellers with little to no resistance.
Although I am still long GLD, GDX, SLV, I've closed out my Futures positions for $2,154.50 profit and will wait for a better swing trade setup (entries/exits linked below).
Setups: 1. Continue squeezing up from here. Buy on daily close above 0.618 fib @ $2,070. 2. Chop sideways between $2,000 and $2,070 before moving up. 3. Dip lower and find support. Lot's of chop before a swing higher.
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Monthly chart logarithmic scale shows no signs of stopping so rather than waiting, I'm opening a long position now and will add on dips.
+1 @ $2,057.20
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Daily close above the 0.618 fib extension with little to no resistance. This could be big. As prices start to go parabolic many traders that are expecting a pullback might be disappointed. Someone's buying with both hands it seems.
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I lied. DXY double bottom?
-1 @ $2,076.30
Profit: $191
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Bought it back at a discount.
+1 @ $2,046.60
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Looks like setup #3 is playing out so I'll wait a couple days to add to this position.
Usually after a big sell off there is 1 more smaller dip lower to scare the new dip buyers into selling.
Watching these levels for a bounce: $1,938 and $1,904
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B R U T A L
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I think DXY will make one more attempt to 94 before rolling over. So I'm anticipating Gold and Oil to inversely react and sell off before running up.
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The sell off on DXY is on it's 3rd leg down which is usually the last before a relief rally. This would push Gold back down if it plays out which is why I'm not adding just yet. It could get pretty violent.