Gold continues higher after recent buy signals [Video]

Jason Sen DayTradeIdeas.co.uk

Gold made a Sunday opening low exactly at first support at 4322/4317 .

Shorts at strong 5 month trend line resistance at 4355/4360 then worked perfectly on the retest of first support at 4322/4317 for a 450 tick profit.

Longs here also worked perfectly for the second time yesterday as we made a low for the day exactly here & shot higher again for another 450 tick profit.

The break above the resistance at 4355/4360 in late evening was a buy signal to test the 100 day moving average at 4389.

I told you not to try shorts as I thought we would continue higher.

The break above 4394 was another buy signal targeting 4421/4425 and we reached 4434 over night.

We keep buying Gold at support levels & on breakouts above resistance and this strategy is working so well.

Bulls will want Gold to hold the 100 day moving average at 4390/86 today to target 4495/4500.

A break below 4382 however risks a slide to a buying opportunity at 4370/4365 & longs need stops below 4360.

Just be aware that a break below here can target another buying opportunity at 4340/4330 & longs need stops below 4320.

Author

Jason Sen

DayTradeIdeas.co.uk

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.

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