Here's why Gold will move sideways for 4 months $XAUUSD
Gold has rallied up to a level that is an old trading range from last year from February to June.
In summer, Gold jumped out of that range and moved up another 10% before sliding back down into year end.
Market's remember old price levels and those folks who entered the gold market last year didn't really have a chance to get out of their positions. The signal for them to get out was the fact that gold slipped 10% down to $1130, which is far beyond the price where there were buyers last year around the $1240-$1260 level.
I labeled the decline into year-end 2016 as "psychologically tortuous", which I think is why we are having a decent bounce from that oversold extreme.
An active strategy from here is to "trade the chop". Sell calls going out to May using the $1250 strike to capture option premium. If you want to get long, sell puts with a $1200 strike and capture all of that premium instead of buying outright.
Either way - it will take awhile to get through this price level. Sharp shake-outs are possible, but be brave and buy into those breaks when the 30 minute chart fails to follow through after 3 bars.
Cheers,
Tim
Jan 23, 2017 9:41AM EST
In summer, Gold jumped out of that range and moved up another 10% before sliding back down into year end.
Market's remember old price levels and those folks who entered the gold market last year didn't really have a chance to get out of their positions. The signal for them to get out was the fact that gold slipped 10% down to $1130, which is far beyond the price where there were buyers last year around the $1240-$1260 level.
I labeled the decline into year-end 2016 as "psychologically tortuous", which I think is why we are having a decent bounce from that oversold extreme.
An active strategy from here is to "trade the chop". Sell calls going out to May using the $1250 strike to capture option premium. If you want to get long, sell puts with a $1200 strike and capture all of that premium instead of buying outright.
Either way - it will take awhile to get through this price level. Sharp shake-outs are possible, but be brave and buy into those breaks when the 30 minute chart fails to follow through after 3 bars.
Cheers,
Tim
Jan 23, 2017 9:41AM EST
Kommentar:
"Spot on" so far. Massive overhead supply is a major factor preventing Gold from moving higher. I think we also saw some head-scratching when Bitcoin got ahead of Gold this past week. But outside of the normal reasons why people buy gold, when VIX is rising for example or when nerves are high about the health of financial system or concerns about some violent upheaval, it is actually encouraging to see gold fall because it should mean that stability is returning. 3/9/2017 11:16PM EST 1198.11 last $XAUUSD
Kommentar:
If you hit the "UPDATE" button on the chart you can see that the market has indeed been under the "CLOUD" of supply overhanging the market in the form of "old buyers" liquidating their old, losing positions.
It takes time to chew through supply as big as this, so look for Gold to follow bitcoin and surge higher over the remainder of the year. The world always needs a safe-haven asset class and gold is still one of the best to keep an eye on and utilize for hedging against central bank endless liquidity. If you don't marry your positions (trade in and out), you can capture 10%-15% return per year in gold on 10%-20% of your portfolio and get a 1%-3% portfolio return while experiencing reduced volatility.
April 27, 2017 8:09PM EST
It takes time to chew through supply as big as this, so look for Gold to follow bitcoin and surge higher over the remainder of the year. The world always needs a safe-haven asset class and gold is still one of the best to keep an eye on and utilize for hedging against central bank endless liquidity. If you don't marry your positions (trade in and out), you can capture 10%-15% return per year in gold on 10%-20% of your portfolio and get a 1%-3% portfolio return while experiencing reduced volatility.
April 27, 2017 8:09PM EST
Kommentar:
Right on top of the forecast now.... sideways for 4 months panned out. Hope you did well over this time period. 5/7/2017 1230 last 9:47PM EST
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If you sold calls, cover those calls here. If you have no positions, this is a great place to buy with a close stop (1 average range, $15) and target a $20 rally. I think the odds are 60%-75% that we will see a rally of $20 before a decline of $15 from here. In the long run, those are good odds.
Tim 9:14AM Thursday, Jan 26 Gold 1190.70 (GCJ2017) -9.80