Gold has had plenty of great trading days and weeks. And it has also been providing a defensive alternative for stocks.
But right now, we see that the market, while providing some appealing trading attributes, is not trading in the buy zone for the futures contract (GC).
So, despite the allure of gold, we are out of the market for the moment.
I’ll explain below why we’ve decided to sit on the sidelines until conditions change and the price moves into the buy zone.
The Gold Futures (GC) Trade Evaluation
Here’s how the chart is setting up for the Gold futures contract (GC)…
The GC monthly time frame is in an uptrend, with the market making higher highs and higher lows.
The market has an up Fibonacci with an upward extension price point 2,486.60, about +6,824 ticks above the market.
However, we are waiting to see how the monthly time frame closes to make a decision on direction.
Right now, the monthly time frame is breaking the up trend line and entering into the sell zone.
If the monthly time frame closes in the sell zone, then we will need to look for selling trades.
If the market closes back above the up trend line, then we will need to look for long trades.
At this time, we are out of GC.
The Bottom Line
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Keep on trading,
P.S. My colleague Anthony Speciale here at Traders Agency continues to work diligently on trading ideas behind the scenes in the petroleum market. And these ideas have the ability to set up a “pipeline” of profits…
To learn more directly from Anthony, click here.
The post How We’re Looking at the Market for Gold appeared first on Josh Daily Direction.