Wednesday, September 4, 2013

Gold Day trading strategy

8:30am EST
We have Red-Star news at 830am EST this morning we expect to see the best price-action around this time today.

*(US) JULY TRADE BALANCE: -$39.1B V -$38.6BE- Prior revised wider from -$34.2B to -$34.5B Components: - Imports M/M: $228.6B v $225.4B prior - Exports M/M: $189.4B v $191.2B prior - China: -$30.08B v -$26.65B prior (largest deficit on record) - Japan: -$6.81B v -$5.52B prior - Canada: -$2.76B v -$1.61B prior - OPEC: -$7.44B v -$5.76B prior - Mexico: -$4.12B v -$4.79B prior - European Union: -$13.94B v -$7.09B prior

Gold Futures Analysis
Gold Anchor Chart 1
We can see a major bull price-channel on the 5400-tick chart, telling us the long-term trend is BULLISH this morning.  We can see major symmetry resistance above us at 1439.0 and major support levels below us at 1372.0 and 1352.9.  The ideal location for a buying opportunity this morning is at the lows of the price-channel or at any major support level below.

Gold Anchor Chart 2
We open the 1800-tick chart and we get the information we REALLY need this morning before we take our first few trades of the day.  First, we see the bullish price-channel has been broken and now has developed into price-wedge structure.  This price-wedge tells us there is NO confidence in the higher or lower direction, so we will buy the lows and sell the highs of the price-wedge.  We also remember to use the Trigger-zone #2 when we find a price-wedge. 

Gold Entry Chart

We can see resistance above us at 1403.8, 1410.9 and 1421.1 and support below us as at 1395.0, 1389.9, and 1382.8.  We would LOVE to buy the lows of this price-wedge at the 1382.8 price level.

Gold VIP Chart
We are trading right in the middle of the trading-range from Tuesday, and directly on top of the big-round-number at 1400.0.  With the news from Syria and the pending G20 summit this week we know that Gold has the potential to move any direction it wants, so we will be open to buying the PLOD at 1384.3 and selling the PHOD at 1416.5.  Avoid trading on top of the big-round-number and the middle of the trading-range from yesterday.

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