Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Closing the Gold Scalp
October 28, 2021 - (Gold Market Wire) - Our scalping idea from yesterday has worked out well and we now take the money off the table...and place it in our pocket. We correctly identified the bottom of the trend-line, bought it, and secured traction in the move higher yesterday, and early in the European a.m. Now we close out the scalp.
Yesterday's identification of the $1784 level (yet again) was accurate almost to the penny, and was the signal to scalp the market from the long side. After the touch down we bounced nicely into this morning and now the discipline demands that we pocket the profit. Given the chart formation it would be almost tempting to side-pocket the trade and hold it, but we must resist such temptations, and realize the trade.
Our core and trading position remain unchanged. Those who followed our missive from last week to add to core on pullbacks have had a good entry point. Now $1804 looms (which is part of the reason we are closing the scalp) and while we have a good chance to clear it we will run just the position from here. It's still a traders market - definitely - so let us be reminded to close up any "loose ends" as we head into the first few hours of New York trade tomorrow. While this time we could see a big buy into the close, we must be cognizant of the fact that traders and locals squaring books for the weekend is the big shadow that has cast itself over Friday's for several weeks now.
Don't get greedy! ... and stick with the discipline. The loss of discipline is what turns heroes into zeroes in the trading world...and especially in Gold and Silver.