UPDATE: We are moving our stops up a little further. This has been a great run on the breakout and we will want to make sure we lock in more. Don't chase up here. Goldie runs fast. If you missed the trade be patient for pullbacks.
A quick update. GC is getting ripe and we expect some movement today (with NFP numbers) or early next week. This is a weekly chart signal so we will expect a nice move once it triggers. REMEMBER: NO TRIGGER, NO TRADE.
Gold, like silver, is forming a significant bottom as its weekly and daily RSI, Stochastics and MACD have all either turned higher or are completing their bottoming stage. Significantly, gold appears to have bounced off a major support that held May and July 2010, and June and December 2013. A respectable key upside target in the 1340 range can be expected based...
We are choosing to to stay out of GC1! for the time being. While the break of the descending wedge was tradeable...the action has been whippy and the risk has been hard to identify. Look at the larger wedge building. We are keeping a close eye on this for a big break.
* Price hit the extension of the neckline from last year's large
head and shoulders pattern and reversed almost to the penny.
* Price is still in a broad range area that may prove to be choppy.
Trade the range until a trend is determined.
* Until price can break above the neckline extension trend line or
break down back below the red descending trendline...
As I noted when I first posted this chart mid April, the 1275 level is a key support for gold. Today that support was busted. Unless bulls can rally gold back over 1275 and close a weekly candle over that figure gold will likely probe last years lows ~1200. My gut tells me that level will not hold (triple bottoms are not usually good lows) and 1050 then 950 comes...