gold trading forecast , Did the Hedge Funds Just Pass the Buck to the Small Specs

gold trading forecast ,  Did the Hedge Funds Just Pass the Buck to the Small Specs

gold trading forecast ,  Did the Hedge Funds 

Just Pass the Buck to the Small Specs

gold trading forecast Gold futures surged to just about a seven year high early Monday then spent the remainder of the session giving back most of these earlier gains. Most analysts are getting to specialise in the first rally and therefore the reason for it, however, that’s not analysis, that’s just reporting headlines

The problem with this sort of rally is that the entry for those that missed the worth surge, or the re-entry from those that took profits early and missed the extension move. It’s easy to mention “gold rallied due to safe-haven buying”, but that sort of analysis doesn’t tell you where to urge in and what risks you're facing once you do catch on 

gold trading forecast From my experience, you've got to think outside the box. While most small speculators specialise in the “if I buy now, how high can it go,” the professional trader looks for his exit first because he realizes that if he's right, the rally will lookout of itself, but if he’s wrong, the loss are often unforgiving

So let’s get real. Where is that the exit if you’re wrong? Where is that the best price zone if you would like to urge it? Let’s face it, most traders missed the move and now they need to urge it, but is it an honest decision

gold trading forecast Typically, professionals take the time to create a support base then exit their position by selling it to the general public who will buy the headline, or their over-optimized trading signal. We may have seen that on Monday because someone jumped in on the opening to make a niche and someone bought the high, thinking the market was going higher

The main trend is up consistent with the daily swing chart. The uptrend was reaffirmed when buyers took out Friday’s high with a gap-higher opening on Monday. the most trend will change to down on a move through the last swing bottom at $1463.00

gold trading forecast The close below the mid-point of the day could also be a sign that the selling may be greater than the buying at current price levels. The close below last year’s high at $1571.70 says an equivalent thing

The daily/weekly gap is $1556.60 to $1562.30. Is that a buy zone? Not really. I call it an “anecdotal support area”. Unless you probably did extensive research on the gap, you don’t know anything about it. Is it a breakaway gap? Is it a measuring gap? it's to me like it’s an exhaustion gap so it might be signaling the move is over

If you would like to shop for the pullback into the gap then confirm you've got a fast out under rock bottom of the gap

If the gap fails then the market is probably going to still decline into a neighborhood that's attractive to buyers just like the uptrending Gann angle at $1525.10

gold trading forecast The main range is $1453.10 to $1590.90. Its retracement zone at $1522.00 to $1505.70 is perhaps the simplest buy area since it represents value. In other words, if you couldn’t get rock bottom and you don’t love it near the highest then start brooding about a pullback into the five hundred to 61.8% retracement zone

Finally, you'll always buy strength over $1590.90 or over the uptrending Gann angle at 1597.10. These are easy exits if wrong

gold trading forecast The reason why I’m talking about the buy side is because the most trend is up. All we’re trying to find may be a good, low risk entry within the direction of the trend