Free money induced bounced is about to get wiped out from Gold
chart in less than a week. We have mentioned many times before that inability to sustain any meaningful bounce from the events ( equity downfall & terrorist attacks ) which usually helps gold
, is the clear indication where the path for least resistance is. Besides there is no real panic now to sustain any gold
move higher. Gold
are usually trade in cycles covering many years. For professional traders, day trading gold
is ok because they can define the risk and adjust quickly. But for part-timers there will be plenty of surprises when they wake up! For example, right now gold
is sitting where it supposed to be - 1235 support level
. Next couple of points you can get from the test of 1230 support and same applies to 1345 resistance. But for that you need to be there and trade it quickly and get out as soon as you get your couple of points or take profit on one lot and adjust stop loss for remaining position - which we usually like to do.
Easiest way to trade gold
right now is just buying puts whenever it hits big resistance and that is paying us well. Options define the risk and give us good reward. Don't try to get fancy by selling something to finance puts or getting into arcane option strategies. Keep it simple, buy puts.
In our opinion, if gold
is going higher then it will just be couple of days affair when it hits 1300 or 1350 or 1400. But then it will spend all remaining days in the month to retrace back because panics never last forever. Unless there is real frenzy and madness, gold
are never going to fly so easiest trade is to sell it at good levels. We have been selling with every meaningful bounce and it has been working like charm so far :)