There's been quite a lot of buzz recently about Gold
being on the cusp of a bull
run due to global NIRP and the market's pricing out of all but 1 Fed hike through 2017. The technicals support the hype. We've seen two breach solid breaches of bearish trendline
resistance extending back to 2012 highs and we've seen a solid base build off of even stronger trendline
resistance at around 1040. Gold
has since rallied up to its 3mo trend line
resistance, which coincides with w/ fib extensions b/w 1153 and 1166. RSI
is at its highest overbought level since Jan 2015. I think a nice contrarian trade is to go short in expectation of a stronger than expected FNP report. Doing so at very overbought short-term levels and at coinciding resistance levels makes the trade all the more attractive. I'm entering at 1160, targeting 1087 and keeping my stop fairly tight at 1190.