Thursday, September 5, 2013

Gold Day trading strategy Gold

8:00am EST
We begin our morning prep by reviewing the blog this morning and planning our day ahead of us.

We got winning trades on the Gold for the Opening-bell Breakout, and a losing trade on the Euro.  We see about +30ticks of profit on the Gold and -10ticks on the Euro.
8:30am EST

Jobless Claims come out lower than expected, which is bullish for the USD.
 *(US) INITIAL JOBLESS CLAIMS: 323K V 330KE; CONTINUING CLAIMS: 2.951M V 2.99ME- 4-week avg claims: 328.5K v 331.50K prior (lowest since Oct 2007) - Prior Initial Claims revised higher from 331K to 332K - Prior Continuing Claims revised higher from 2.989M to 2.994M

Gold Futures Analysis:
Gold Anchor Chart 1
We can see the long-term trend continues to be bullish on Gold Futures this morning, and the 5400-tick anchor chart shows us major support at 1372.0 and an excellent buying opportunity at the lows of the price-channel at 1352.9 and 1338.8.  we would love to buy the lows of this price-channel or use any major support level for a price-reversal followed by the buying opportunities as price-action moves higher with the long-term trend.

One last look at the 5400-tick anchor chart, we can see the short-term trend is bearish, with a red cloud.

Gold Anchor Chart 2
We can see a price-wedge on the 1800-tick anchor chart of Gold this morning along with a bearish trend that matches the bearish trend we saw on the 5400-tick chart.  We want to sell short on Gold this morning using the directional clues from the anchor charts.

Gold Entry Chart
The 600-tick chart is just about right to change from bullish to bearish trend, and when it does we will be selling short using our Wave pattern this morning.  Ideally, we want to see a new lower-low followed by a test of our trigger-zone and then once price-action moves lower we will enter short on either the 600 tick or 200 tick entry charts.

We are just below the average volume for this time of day, so we know things are a little slower than we would like them, and we know we need to be patient to wait for that new lower-low so we can get selling short today!
Gold 30-Minute Chart

On the 30-minute chart I am at the lows of the range from Wednesday, which tells me the sellers clearly had control, but now we see the price-action stalling on top of the support at the PLOD at 1384.3.  This tells us the sellers have tried, and they have failed.  If we can go higher we can use the InsideOut Set-up to buy the PLOD after the sellers failed to move lower.  Another opportunity Is to wait for a new lower-low below 1381.0 and then sell short using the Wave pattern down to the 1373.6 and 1367.8 for your profit-targets.

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