COMEX GOLDHere is the updated Daily chart of Comex Gold. I had mentioned recently, that the commercials had gotten long this market. At that time, we were still in a downtrend.
That trend has now been broken, and a powerful move upward has taken place. The seasonal is a little early, to make this an ideal long setup. However, rarely is everything setup perfectly for trades.
As a long term trade, I would not be a buyer here. However, as a short term trader, I would watch for retracements against the trend for entries on the long side. On this past monday the market broke through the 608 level, which was a level I had mentioned to watch in a prior post. Breaking that level, reversed the downtrend.
2 comments:
I subscribe to the Zeal newsletter, and they also say to wait. They pretty much have the same conclusion as you, since they follow technical indicators. They don't mention the COT, but the 200dma. They say we should wait for the price of gold to go below the 200dma, and it could be a few months. This is for a long position in gold. What do you think of the 200dma? Do you consider it?
I have not found the 200 day ema significant in any of my research. I have entered a post or two here about that in the past. However, your view of the long term I think is that you think GOLD is going to rise substantially.
If I had that view, I would not be that picky about entering the market. I would have bought the dip, when the commercials got long a couple of weeks ago. I would just be looking to buy weakness against a trend. Then turn off the news, and do not pay any attention to it. Stick to your conviction. Establish an exit point that you will use in the event that you are wrong, and stick by it come hell or high water.
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