Last week: Drop and retrace
Last week the gold futures had a two-day drop early in the week in reaction to calls from some analysts predicting lower prices for this year. But the market quickly found its support and bounced back above the 1200 level and managed to close above it on Friday, with only a minor loss for the week.
Nat’s pivot at 1207 became the resistance near the high for the week, and her first buy level at $1182 captured the low of the move. Traders who acted on it made about $20 per contract on the retracement.
The bounce halted at the previous week’s close, but the uptrend line is forming a short-term rising wedge. Breakouts from these wedges can move in either direction.
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