GOLD ($) - on up­ward trend

Trend: Medium and long term up. Short term down, get­ting over­sold. Strat­egy: Buy the gold price it­self (ie bul­lion).

Finweek English Edition - - Creating wealth -

• The dol­lar gold price broke out of a large chan­nel in Jan­uary (lines 1 and 2). The price has now pulled back to retest line 2. It’s also trad­ing in a ris­ing chan­nel (lines 3 and 4). Line 3 is im­por­tant short-term sup­port at $640 on its spot price. • The daily rel­a­tive strength in­dex (RSI, on top) is quite over­sold but can have an­other dip to the over­sold level be­fore mov­ing up again in earnest. Nev­er­the­less, the strat­egy now should be one of buy­ing on pull­backs. Clos­est sup­port is line 3 at $640. Buy gold fu­tures on an up­ward re­ver­sal as close to there as pos­si­ble. • The up­side tar­gets are cur­rently $690-$710, as well as a more medium-term tar­get of $750, ie the height of chan­nel 1-2 pro­jected up. The stop-loss when buy­ing on a pull­back is a clos­ing price be­low $634 (spot price).

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