Gold swing trades – week of Nov. 14, 2016

Last week

161111-gold-prices

Weekly Gold futures, to Nov. 11, 2016

The surprise results from the US presidential election sent GOLD futures up to $1338.3 but it sold off sharply into the end of week. GOLD had 6.1% net weekly loss.

Last week’s trades

161111-gold-60aIt was a terrific week for gold traders, the greatest potential profits of the year. The unexpected ending to the US election sent gold soaring in the overnight trading Tuesday, only to start a monumental slide once the day session began.

Nat’s trading levels captured both moves. The overnight buyers started jumping in almost exactly at Nat’s first buy level ($1273) and quickly ran the price up past her second sell level ($1335). Once the sell-off began in the day session, the final destination was her last support line at $1220.

The move was worth $6,000 per contract on the way up and $11,000 per contract on the way down. Anyone who stayed aboard for the round trip made $18,000 per contract. Most traders likely got off the trade too soon, but those who followed Nat’s calls caught profits in both directions. You can see last week’s calls here.

This week

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This section contains the specific buy/sell levels for this week. It is reserved for paid subscribers. Previous weekly swing trades are available free of charge in the archives.

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Hi . Read or download the full Gold trading plan here:

Download link: (161114-Gold.pdf, 263KB)

 

161111-gold-dailyNow a complex but very clear bearish pattern is shown on the daily chart – a H&S pattern. The yellow mental has multiple Heads, the neckline is lying at $1200-1191 zone. This week GOLD could bounce from that neckline and go sideways for consolidation. But $1290 area should be a strong resistance. Also the unfilled gap between $1266.40-$1265 will act as resistance to prevent price from popping or filling that gap.

The short-term price action was quite bearish. The investors anticipate a December interest rate hike from the Fed . But a new president may bring a new stimulus plan, which could help GOLD to bounce again.
Based on wave move, the GOLD is in sub-wave 5 of long-term correction wave. $1020.50 could be max downside move if GOLD breaks down the neckline of H&S pattern.

But before the price gets there, there are many unknown outcomes ahead. Therefore Shorts can sell on bounce at major resistance zone, buyers can buy near neckline with protective stops.

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