Long on GOLD if...My favorite trading pattern is to buy breakouts or breakdowns after a base (high base/low base). Gold is in that ideal pattern that I look for, nothing fancy here. Price has risen (like almost everything else) since the US election in November. Unlike equities though, volume hasn't deteriorated as we move higher, though it hasn't risen much either.
We are looking to take long positions after a move above the recent swing high with buy stops above 1244.71 area and buys on the pullback after. There should be enough volume around this inflection point to fill all initial orders we need on this first entry of our potentially bigger position.
This is the initial entry we are looking to take in gold and if it continues we will be looking to add to our positions over time.
The 1245 area is the confirmation to start buying, until then no entries have been or will be made.
