Gold Testing Support
By John Hughes and Scott Maragioglio
Gold has fallen $50 in the last two months, and the recent push in the rates and the dollar have brought the metal back for a retest of the long-term uptrend line at $639. This would be a natural place to expect a rebound in gold prices and a rally back to overhead resistance line at $685.
A breakout over resistance at $685 would suggest that the bulls are back in control and that the metal wants to resume the primary uptrend. If the dollar breaks the downtrend line and gold breaks the uptrend line, then we would have to say that there has been a real change in this market. It would suggest that traders may need to change their market view, but we expect the status quo to be maintained.
The easiest way for investors to get involved in the gold market is to trade the streetTracks Gold Trust . Buy the GLD at $65 and use a break of the uptrend line at $63.50 as a stop loss.
Look for a rally over the resistance line $68 to confirm that the commodity is seeing a bullish breakout. Gold is presenting a solid technical trade at these levels, and the risk/reward scenario makes this an attractive investment.
Read More...
Gold has fallen $50 in the last two months, and the recent push in the rates and the dollar have brought the metal back for a retest of the long-term uptrend line at $639. This would be a natural place to expect a rebound in gold prices and a rally back to overhead resistance line at $685.
A breakout over resistance at $685 would suggest that the bulls are back in control and that the metal wants to resume the primary uptrend. If the dollar breaks the downtrend line and gold breaks the uptrend line, then we would have to say that there has been a real change in this market. It would suggest that traders may need to change their market view, but we expect the status quo to be maintained.
The easiest way for investors to get involved in the gold market is to trade the streetTracks Gold Trust . Buy the GLD at $65 and use a break of the uptrend line at $63.50 as a stop loss.
Look for a rally over the resistance line $68 to confirm that the commodity is seeing a bullish breakout. Gold is presenting a solid technical trade at these levels, and the risk/reward scenario makes this an attractive investment.
Read More...
posted by Bruce Kelly at
12:23 PM
