GOLD - Breakout But Don't You Get Exited Yet
Gold apparently broke out of its bullish flag channel and shall head higher. Still don't you get exicted yet. With the current outflows of ETF and inflow money into stocks, gold will continue to range for a while before the major breakout to the upside.
Technically, RSI indicator shows gold in a consolidation mode by fluctoating around negative zone to 60. Gold also has BIG resistance zone around 1820-1835. As long as RSI stays under 60 and gold stays under that resistance zone, gold is still in a conolidation and accumulation mode. The daily moving averages also signal sideways movement.
Now we expect gold to return to 1760-1770 support level by the uptrend line. It is good to sell gold around 1820-1835, and target 1760-1770.
Technically, RSI indicator shows gold in a consolidation mode by fluctoating around negative zone to 60. Gold also has BIG resistance zone around 1820-1835. As long as RSI stays under 60 and gold stays under that resistance zone, gold is still in a conolidation and accumulation mode. The daily moving averages also signal sideways movement.
Now we expect gold to return to 1760-1770 support level by the uptrend line. It is good to sell gold around 1820-1835, and target 1760-1770.
Trade active:
Went short half posy @1830. Might consider add another half posy @1840-1845 if price gets some extension, overshoots a resistance a little bit. Stop loss above 1850.
Comment:
Note a full posy means a contract with 100 ounces, so half posy is 50 ounces.
Trade closed: stop reached:
Gold shot higher on unexpected higher inflation news, thus hit my stop loss @1850.
