Gold swing trades – week of Feb. 1, 2016

Last week


Gold futures, week ending Jan. 29, 2016

GOLD price surged again last Monday and Tuesday, anticipating that the Fed would not raise rates on Wednesday. There was a little sell-the-news activity and gold had a minor pullback on the following day. However gold still had a better performance in January than any other sector. So far GOLD had 5.27% net monthly gain to the January closing.

Last week’s trades


Gold futures, week ending Jan. 29, 2016

The futures opened the week above Nat’s pivot line at $1096 and marched decisively up to $1128, a very solid gain of $32. Trader’s who were not alert may have missed the early part of that move, but the break through the first resistance level and Nat’s key line at $1110-$1111 was a very clear signal, with at least two distinct opportunities to get in.

Rhat moved continued $15 to her first sell level at $1125, and promptly reversed back down to the key line, offering a good tradeable move down. Two good moves, easily tradeable.

This week

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Gold futures, daily chart

The short-term support level has been moved up to $1080-90 from $1070-60 zone. Ahead, there is a major resistance line. The 200-day moving average at $1135.50 overlaps an unfilled gap from last Nov. 3 at $1135.90.

A move above $1143 could be bullish, a further advance up to $1150 area should be expected.

At the current moment, GOLD price has an ultra-short-term overbought condition. Early in the week we may see a sideways move or a minor pullback into last week’s low area for testing and to resolve the overbought condition.

The $1080-82 range is a key support. As long as the price stays above it, GOLD could move back up to challenge the overhead resistance lines.


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