News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
Gold Market Wire....News Analysis and Commentary for Gold Traders and Investors...Gold Market Wire
Gold Market Wire....News Analysis and Commentary for Gold Traders and Investors...Gold Market Wire
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US Month on Month Job Cuts by Employers Soar 54% in July
US Month on Month Job Cuts by Employers Soar 54% in July
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CME Raises Silver Margins by 12.5%
CME Raises Silver Margins by 12.5%
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United States Imported a Record 126.6 tonnes of Gold from Switzerland in May
United States Imported a Record 126.6 tonnes of Gold from Switzerland in May
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First Half 2020 Gold ETF Inflows Hit Record of $40 Billion
First Half 2020 Gold ETF Inflows Hit Record of $40 Billion
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Fitch Ratings Calls 2020 "Record Year" for Sovereign Defaults
Fitch Ratings Calls 2020 "Record Year" for Sovereign Defaults
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Bank of Japan to Loan $1 Trillion into Economy
Bank of Japan to Loan $1 Trillion into Economy
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*** GOLD MARKET WIRE ***
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Update

Gold's Channel for the Past 6 Months

July 8, 2020 - (Gold Market Wire) - Gold has made it through $1800 with little fanfare, after flirting with the overhead resistance line and finally breaking through. Now is a good time to step back for the big picture look - to see where the next resistance might be encountered and where length could be added. We'll pull back for a look at Gold's primary channel from the beginning of the year.

the channel since the start of the year

Since the start of the year, the primary channel has delivered some 20% of gains within a six month period - although not without the big March madness - which violated the lower parameter. Now, as we reach the top of the channel, the temptation to chase the strength and hope for a huge move becomes even greater. Those with length will be tempted to add to the position, but we favour lightening up by a small amount (20-25%) as we get to the upper boundary and trying to find a re-entry point to add sheded length if we move back into the lower part of the channel charted here. If we don't get it - well, we can always ride the balance off into the sunset.

Gold has proved itself to be in a strong bull market. Of that there is no doubt. But trading a Gold bull means always trying to avoid leveraged buying into strength. Aside from the "untouchable" core position which must be held with an iron grip, the trading position needs to be balanced and reasonable. Scaled down buying on pullbacks is the key - adding incremental length with each drop and avoiding margin like the plague. If the market gets seriously strong - and it already is - the discipline level will have to heightened even more and size will have to be tempered further.

Those that have been long since the first five years of the milenium, and have weathered, with patience, the "storm" from 2012-16, are now receiving the first rewards for their patience and dedication to their belief in a secular Gold bull market. There are many such rewards soon to come, over the next 2-4 years.

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