Gold Price Reversal Indicates Traders Buying the Dip

Guy Cerundolo

Gold has been in a strong “trend” trade that needs to be respected (until the trend is broken).

I have been monitoring the recent pullback in Gold prices for a buying opportunity (or an ellipse reversal – buy signal).

That occurred this week in Gold futures. And is offering trend “traders” a decent risk / reward opportunity trade.

See the chart below for the ellipse buy signal and other annotations.

I think one can add to position here in anticipation of another leg higher (with a stop).

Follow-through buying could take Gold futures up to $1640.

Gold Futures “daily” Chart

gold futures price reversal higher bullish buy signal _ 16 january 2020

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