A Golden Strategy – To Trade Gold ! – 5/27/2016

A Golden Strategy – To Trade Gold ! – 5/27/2016

How do you know if a strategy is working in trading? Of course, when price paint the right picture for you.  Now when Gold is down almost $90 from our short entry ( you can check the rationale behind shorting Gold here ), we can comfortably say that the strategy of shorting Gold from each big resistance is working.  When we outlined this strategy there were many questions.  Besides going against the idea of big guns in the industry always has that fear factor.  When someone like Stanley Druckenmiller likes Gold long, there must be something.  But well, as we mentioned earlier, if you don’t have few hundred million to bet and time horizon ( a.k.a. staying power) like him, then you better resort to the short term strategies. No macro stuff, just basic technical analysis.

Now what? Well, strategy remains the same !  Watch these levels and wait for the shorts near – 1260 / 1300 and so on. Also for short term long trade we will be looking for support levels near 1200 / 1180 and 1160.

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GOLD_Weekly_Chart_May_27_2016

GOLD_Weekly_Chart_May_27_2016