Gold trading – make or break price action

Gold trading – make or break price action

Gold trading make or break price action.

Gold Make or Break price patterns 300x259 Gold trading   make or break price actiongold trading 2 Even though there is overall weakness in the stock market which normally has an inverse relation to the gold markets, we are seeing a bearish pattern in the technical charts.

Gold buyers have been very weak in this move up. Although the US and world markets this week have mostly seen a correction. As you can see in this chart of NUGT which very sensitive and volatile compared to gold futures prices, we have created a bear flag. This means the market has sold from $60 to $33 a share then recovered back to 43. We are not seeing any commitment on the buyers side and as you can see the supporting trend line is about to be tested as sellers have moved in and could be taking control again.

On the sell side the targets we are looking for is $33.95 this will be initial support on the move down. It would not be unusual to see it Chop in this area from $33-39 with highs to $43. If support holds here at $398 then we would be looking fro a continuation to $44 and then a further move to $49 which is the 200MA or the 200 day moving average.

There are many outside variables effecting gold pricing. What goes on in the Ukraine this next week could be more of a determinate than the correction in US stocks. We shall see.

Trading Gold, Gold miners in either futures or ETF’s is extremely volatile. Do not trade it unless you have spent time studying the charts and have risk capital. Risk capital is money that if lost will not hurt your financial future. For many people buying and holding physical gold is an easier position as it normally turns out to be a long time hold.

Trade at your own risk level.

Post from: Day trading course – S&P 500 Day Trading Coach

Gold trading – make or break price action

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