Gold and Oil Have Impressive Upside Days

May 11, 2016 - 5:17pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

This morning we sent out a special trade alert recommending that subscribers initiate a long position in gold.

Traders taking that call entered the market roughly at 1276.

Maintain your current long gold position at 1276

Maintain your current stop below 1257

Gold Market Forecast

Gold in fact did trade to an intraday high of approximately 1305.

However, from that point gold prices began to trade under pressure breaking back below 1300.

 On yesterday's show we spoke about the fact that a logical place to look for support would be at the 61% retracement of that rally (1259).

We also spoke about a trade set up based upon gold finding support at 1260 and the potential unfolding of a candlestick pattern known as a Three River Morning Star.

Today's rally in gold completed the pattern, which prompted us to pull the trigger on our current trade.

On today's video report we will look at our current trade as well as an upside target and rationale for stop placement.

 

 

Trending Markets: Proper Action

We are flat with no active trades in trending markets

Trending Markets Forecast

An interesting day to say the least, in which we saw crude oil break back above $46 per barrel, and US equities give back the majority of gains achieved yesterday.

This truly demonstrates that at this point there is a decoupling or negative correlation between crude oil and US equities. Generally speaking, that is a good thing.

However, US equities have been caught in a narrow and defined trading range, with each attempt to take out recent highs in the market unimpressive and unsuccessful.

This is not to say that US equities will not continue to trade higher on the year, but US equities are certainly not having a walk in the park but rather are fighting for any gains achieved.

Sentiment Indicator: