As the voting results from the UK started coming out, GOLD surged in an overnight flight to safety. GOLD hit a two-year high of $1362.60 before retreating back into the range for closing Friday. But the price still managed to close above May’s high.
Last weeks trades
A fabulous week for all Nat’s gold traders who had the patience to wait for her trades to pay off.
The market stayed below the Pivot level all week in a very narrow range until Thursday evening, when the first returns from the UK ‘Brexit” vote began to trickle in.
Nat’s first buy level and the pivot set a well-defined entry level that was confirmed a soon as the price broke above it on the early vote returns.
From that point it was just a question of choosing your exit. Traders who took the first exit made about $5,000 per contract in the first couple of hours. Traders who held on for the second exit made about $7,000 per contract.
A wonderful return for those who entered her trade early and stayed with it to the end.
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The Leave vote in the British referendum could lead to other countries holding similar stay/exit referendums. It will bring more uncertainty to the market and the underlying bias toward safe havens will remain for some time.
The PMO was heading toward a sell signal before last Friday, but with Friday’s fabulous rally, it turned up again and bottomed above its signal line which gives a new bullish outlook again.
Last Friday’s high (1362.60) is the resistance level of current intermediate-term rising channel. It could hold GOLD down for a while.
The multiple short-term support lines are lying at 1280-60 zone. The heavy volume on Friday resulted from a price imbalance. We may see GOLD stays inside last weekly range for consolidation and tries to do back-fill (1285, 1265).
But the brief pullback isn’t likely to do damage to the GOLD uptrend. We will continue to see buyers if there is a pullback.