Gold bounced off of the support area for now
Light volume during recent bounce indicates this is a retracement in the downtrend
--> I threw in some Fibs to indicate where overhead resistance lies.
- 7 day MA (currently there); a break would suggest the 20 day MA or the 38% FIb as target (1240ish)
- 23% Fib at 1224, 38% Fib at 1240
- Trend line provided massive support (dark red line)
- High volume at support and during the rally
- future spreads very strong (N16-U16 turned into backwardation)
- If we close positive today 7 MA will cross 20 MA generating buy signal
- running into resistance on middle Bollinger Band (20 day MA)
I sold the 2900 puts last week as a...
Pro Long (Chart):
- RSI and Stochastik created buy signal
- Orange support line
Pro Long (Physical):
- ICE warehouse stocks new lows
- spreads tightening ever so slightly
- still in middle to upper end of trend channel
- room to go in terms of lower Bollinger band
- long term trend still down
- risk/reward for long position not there
It seem like after Earnings yesterday MSFT is going to open between 54$ and 55$. It's going to be a retest gap. So I would wait for a Retest next week an then sell a Bull-Put-Spread in the purple area with a time of 1 to 2 weeks.