Saturday, May 31, 2014

Now That Gold Has Broken Out of Its Range, How Can We Trade It?

Below is a chart of gold. We see the price has clearly fallen below critical support at $1280. What are some trading opportunities in this scenario?






I think the bears are clearly in control here and thus from a trading perspective, I think shorting is a more viable stance -- at least from the timeframe of the daily chart. Support at $1,180 is a major target. If price rallies back to $1,280 -- the bottom of the range it was previously at -- I think it would be a great short opportunity.



As previously noted, though, I remain interested in buying gold on a long-term basis.



What do you think?



by Simit Patel via InformedTrades

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