GOLD UPDATE

For those of you who are long the gold market, the inevitable pullback is happening. I have marked two possible stop placement areas with horizontal red lines. If you recall, I had recommended taking partial profits on the long previously due to the overbought condition in relation to the dollar. This is marked by a horitzontal red lone in the third window.

The first red line would be the most aggressive stop point. This represents the most recent pivot point. The other red line represents, the pivot point prior to the recent one.

Really strong trends, do not take out these pivot points, so this one does not look so good right here. We do not always follow the textbook with market moves, which is why taking partial profits helps you make money on a trade like this that did not work out all that well. It rose more than $20 from the entry point, which is $2000/contract. You never want to let a profit that big become a loss.