Uncertainty surrounding who will end up in the White House after Nov. 8 drove the demand for gold. The futures closed back above $1300 last week.
Last week’s trades
Trading doesn’t get much easier than this. Nat’s entry level — the pivot and her key line were virtually identical this week — prevented the price from falling on Monday.
Once the breakout was confirmed, the price marched straight up to her second sell level (and beyond) almost without pausing.
It then fluctuated around the selling level for the rest of the week, so anyone who waited to the end had numerous opportunities to exit.
The move was $25 per ounce, worth $2,500 per contract, and could have been captured from Monday to Wednesday. A nice, fast, stress-free trade. Click the chart to enlarge.
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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The election result will be the key for this week. Based on our system, $1305-1310 will be the pivot zone. A move above this zone could lead GOLD back up toward the next major resistance at $1335-37.50.
Remaining below this zone could lead GOLD to drop near last week’s low or re-testing October’s low if the selling momentum is strong enough to push the price below $1260.
The direction for Gold will go depend on the results of the election. We expect GOLD will sell off one or two days after election, but will quickly find support and bounce from it.
Daily PMO indicator continues in a short-term buy signal. It implies a breakout should ensue. But price has overhead resistance to deal with at $1310-22, the last monthly breakdown zone. If/when it breaks through this zone, GOLD can continue to appreciate to new highs for the year.