It seems that Gold is painfully stuck in a rising channel. Its about $25 wide with support and resistance rising by almost $1 per day.
Support is at $1265 and resistance at $1288. On election day its expected to be $1273 and $1296.
Given the fed meeting and elections, volatility cannot be ruled out, which may cause Gold to break past. So trade carefully.
I would speculate that if it were to break it would be upwards, in which case I see upside to $1310 then $1330.
Comment
⋅
The way I would trade this scenario is to play the rising channel.
1. Place Buy orders near or slightly above $1265 (increasing by $1 a day) with a SL $5 lower.
2. Place sell orders near or slightly below $1288 (increasing by $1 a day) with a SL $5 higher (only if going short).
Comment
⋅
We'll be lucky if we get to buy around $1265-68. I think oil will try and consolidate here this week. It was broken the $1275-76 resistance decisively. The smart longs are trying to get as much as they can at this level without causing excitement in the price. The want weak holders to exit and for others to short some gold. I think a blip down to $1272-73 should be bought aggressively. Gold will begin to increase in election week it seems.
Comment
⋅
Facing channel resistance at $1290. Lets see if it breaks it. $1310 is the next resistance.