Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
If it Itches...Scratch It !
April 22, 2020 - (Gold Market Wire) - As followers of this site know, trading is about not letting ego get in the way of your decisions. "Marrying the Trade" is one of the worst situations to get yourself involved in, as those who bought and held Gold in the 2011-2018 learned all too well.
This morning Gold is meandering and looking for direction. It remains outside our channel, but is finding a small bid, in an uninteresting environment.
No doubt, yesterday's action could have produced a temporary bottom, but that doesn't mean the set-up looks like Gold just yet. Firstly, we will need to get back in the channel. But if short positions are starting to become a concern, the best course of action is always to scratch them, or cut them, and wait for the market to settle.
Markets don't reward heroic behaviour, as everyone has recently learned from equities to oil. The downtrend line has been breached, albeit inter-day, and on light volume. No real place to establish a new long just yet.