Tired of the whipsaws yet? Just buy physical and you won’t be worried about them anymore. The leverage will come out of paper gold eventually, why not get ahead of the program and get your ounces while they are still cheap and most importantly attainable? I am a Freegolder, therefore I have time to play with Twitter and figure how it works! The way I used to trade, I would have been stopped yesterday and would need to see 1804 fall to get back in.
The short term uptrend was broken yesterday with the lower swing low made around 1730 and likely took out stops that had been moved to just below 1750. Well lookie here, those stops were cleaned out quite nicely weren’t they, with price closing quite a bit higher to boot. Now today we have a big $50 white candle to follow through. This is the price you will pay trading and the risk is being out of the market when the big up move comes. Of course the dinky red candle last Friday just barely set a swing low there at 1750 and if you ignore it, the up trend would be intact with the swing low of yesterday as the critical level that must hold to maintain trend. Either way this chart remains bullish. Resistance is the swing high at 1804 and support is 1735, followed by the 18 day moving average climbing through 1727. The moving averages are now in the preferred bullish configuration where they all lie under current price, in order from shortest to longest duration. This week price bracketed strong resistance at 1775, which was expected. Next week I expect a run at 1825, the first mini-step through a broad resistance zone of $100 dollars, in $25 dollar increments.
RSI took on a positive slope and stochastic remains embedded above 80. Each pullback from the Bollinger band has been a buying opportunity and will continue to be until the stochastic crosses the 80 threshold lower. Again, volume was nothing to get excited about and is just average. The grind continues and I like it this way. A word comes to mind…sustainable. RSI is only reading 61.