Gold rallied last week after the FOMC left interest rates unchanged. The US central bank was concerned about slow global economic growth and slow demand for US goods from overseas. The equity market sold off and pushed the GOLD price up to close near the high for the week.
Nat’s swing trades returned good profits last week. The market stayed below her pivot/keyline area at the beginning of the week on very light volume. Once the Fed Open Market Committee Meeting began, the price broke through her key line ($1108-$1112) on increasing volume. and over the course of the FOMC meeting moved directly up to her first sell level ($1130-35) for a profit of about $25 per contract.
Traders who acted on those calls earned about $2,500 per contract for the week.
Here’s the annotated intraday chart:
It is quite clear that the $1100 level becomes a major support for this week. Now the big decision level is the $1175 line. A break above it could be followed by a move up to the next resistance level $1224. Last week we listed lots of major long-term support zones (see them here). As long as the price stays above those support levels, the accumulation move in GOLD will continue.
Download the full trading plan with the buy/sell numbers here: 150921-gold-plan
1124-18 zone becomes first momentum support zone in the very short time-frame. Early in the week this zone needs to hold the price up to prevent GOLD from changing its short-term uptrend direction.
It is time to watch gold closely. Any further weakness in the US dollar should really help GOLD make an upside run.
1007.7-1033.90 – Yearly breakout level from Year 2008- 2009
LONG TERM Trend line SUPPORT:
1009.50 this week.
INTERMEDIATE TERM SUPPORT: