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GOLD CURRENT TRADE
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Long 1 April Mini Gold at 1603 on 15/02/2013GOLD CURRENT TRADE
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Stop lose at 1582
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The anticipated bounce from the Friday lows has so far been weak and very unimpressive - the bulls will not be encouraged after expecting a decent bounce on the back of Chinese buyers re-entering the market this week. The high for the bounce so far has been 1619, a 23.6% Fibonacci retracement of last weeks' decline.
Today, although there has been significant physical purchasing from China, the selling elsewhere has continued, which is disappointing for the bulls. The market has been falling this afternoon, though the price moves have been very small compared to last week. The area around 1600 should provide some support and there is further support at 1585, being the lower boundary of the 5 month down trend that began in October.
With gold still very oversold, a bounce back up to 1625-1630 remains a likely scenario, though the market may want to retest 1600 before attempting to move back up.
We are long from 1603 with a stop at 1582, at present we are happy to hold this position with a view to closing out on a recovery rally to 1625-1630, or maybe even 1650 if the rally can extend that far (unlikely we feel).
For those who missed our long entry on Friday, the weakness today may present you with an opportunity to join us in the trade, however please bear in mind how fragile the market is and that taking a long here is going against the prevailing trend.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
