GOLD broke above the overhead resistance last Thursday and triggered ultra-short-term profit taking immediately after it made a high at $1318.90. It spent the majority of the time declining and closed under the psychological resistance line ($1300) on Friday.
Last week’s trades
Gold made a very nice round trip for swing traders last week.
The price stayed in a narrow trading range moving back and forth across Nat’s key line last week until the FOMC announcement. Then it broke decisively above the key line ($1286) and ran up quickly to Nat’s first sell level ($1308 -12).
The next day it promptly broke back down through the Sell level and moved back to the key line again.
On the last day of the week it had another rally back to the psychologically important $1300 level before falling back a bit for the close.
Depending on how many of those trades they caught, Nat’s traders had a potential profit of anywhere from $2,200 to $5,900 per contract for the week.
You can see last week’s trading pan here: Gold swing trades w/o June 13, 2016
Hi . Read or download the full trading plan here:
it is very difficult to maintain a steep rising trend. Gold is in need of a short-term pause.
However the intermediate-term and long-term indicators are still very bullish. A break above $1323.50 level should lead GOLD up to medium term $1400 or higher.
$1306.50-03.50 is a key zone for this week.
A failure to move above it will lead $GOLD to retest last week’s low area $1275-50.
But we expect the buyers will continue to enter on dips and help to hold GOLD up if there is a pullback or pause to go sideways for consolidation this week.