TradingGods.net

Gold Stalls into $1,200 Target

Gold is challenging the underside of the $1,200 key target level after a strong rally.

 

By Corey Rosenbloom

Let’s update our short-term charts and plan the next swing from here:

On the intraday frame, we can see the strong rally “up away from” the $1,150 level “toward” our $1,200 target.

Buyers have taken profits logically into the underside of this key price target.

Retirement Day Trader - eBook

Sign up for our Newsletter & get the FREE eBook
Retirement Day Trader:
How to Sell Weekly Options for Steady Income

  • This field is for validation purposes and should be left unchanged.

For trade planning, we’ll again trade the departure “away from” $1,200.

See the prior update and the “This time is different with a breakout” planning from last week’s post.

Whatever other strategies you’re using, focus on $1,200 and the eventual departure (swing) from this level.

Here’s the Daily Chart for additional planning and updated levels on a breakout or ‘fall’ from resistance:

We were planning the “departure from $1,150″ at the 200 day SMA and were ready for a bullish breakout if it occurred.

The same logic then applies now into $1,200.

Price is currently stalling (consolidating) underneath $1,200 and logic suggests a sell-swing lower.

However, just like the “Battle for $1,150,” an additional upside break could ignite another breakout rally.

Upside targets above $1,200 – should it occur – extend initially toward $1,250’s prior swing high.

Otherwise a simple retracement lower opens a sell pathway back to the breakout at $1,150.

Use these simple reference levels for planning and managing your gold (NYSEARCA:GLD) trades.