Commodities are trying to hold their ground and could go either way quickly. There is a lot of chatter going on about gold and silver. I am hearing extreme theories from everyone I talk with. Generally when I see the market get jumpy we tend to see volatility increase which translates into sharp rallies or sell offs.
My finger is on the trigger for Gold
Below are two charts of gold (GLD fund). The first one is what I would like to see before we have a low risk setup. This chart will not only lower the overall risk but increase the odds that the rally will provide more profit. Buying after a pullback actually helps to lower the down side risk because many sellers have been flushed out.
The chart below shows what could very likely happen tomorrow. If prices move higher and the intraday price action generates a low risk entry point I will be sending out an alert. This type of setup has a lower win rate but many times the rallies from these are quick and powerful. Locking in a profit is crucial when trading steeper trend line rallies.
Posts
No comments:
Post a Comment