Gold: Levels, ranges and targets

Brian Twomey Brian's Investment

The last Gold trade was written and taken about 2 months ago. Short 1815 to target 1.1728 for 87 points in 2 days.

Gold 3 days broke vital vital 1839.59 and traveled to 1711 for 147 points.

Requirements for this trade as was the criteria 2 months ago was short the break of the monthly average or 12 numbers at 1839.

The target 2 months ago was the next average at 1728 or 24 numbers. Today's next average is 1747. Gold broke this average to trade to 1711.

Note 2 months ago 87 points Vs today 147. The first monthly average rose by 2 points while the lower average rose by 19 points.

If 24 numbers were known in advance then traders had an easy trade of at least 90 points. Sorry I missed the trade as I just ran throught the numbers but I would've bailed at 1747 for 90 points. The break 0f 1747 to 1711 I would've meant long to target 1747 or the break above for more points and profits.

The only difference between Gold 2 months ago and today is ranges expanded slightly but only slightly.

Here' Gold's lineup: 1510.03 at the 5 year average then 557.30, 1615.43, 1747.80 and 1839.59.

Gold's major malfunction is it trades above its 5 year average at 1510 and DXY trades below its 5 year average at 95.00's. Both DXY and Gold are mispositioned as both must trade above or below 5 year averages. This misposition is a few yeara old.

The Gold standard was active as a market trade vehicle for 1000 years therefore its customary by legacy standardd for a nation's currency to correlate to the nation's Gold price. EUR/USD must correlate to EUR /Gold, GBP to GBP /Gold and AUD/USD to AUD/GOLD.

The strategy moving forward is short tops. Key points are 1730.79, 1756.74 and 1778.56. Bet a Fib number won't be found here nor in the vital averages.

From USD/XAU and today's Fed, the larger range is located from 2000 to 1515.15. USD/XAU 16 points predicts 500 points. Traders see 1731.45 while USD/XAU reports 0.00050 to 0.00058. Easier numbers.

Flash crash, volatility are wrong terms as Gold was a very normal priced movement based on the averages. To the unsuspected traders to Gold's move, we can add calamitous, cataclysmic, catastrophic, market crash. Poor readers are up against the same old tired stories from the same tired people and this can't be stopped as the proliferation is far to great. Traders must be extraordinarily careful who to follow and trust.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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