Yesterday, the spot gold market flashed a major trend change to the upside. Major trend changes do not occur that often and when they do I like to pay close attention to them. The signal came in at $1,331.45, and even though gold is now lower than that point, it is still a valid signal.
With all the Trade Triangles now positive and the fact that we are seeing a pullback today in gold (FOREX:XAUUSDO), this may be an ideal time to get long gold in the ETF SPDR Gold Shares (PACF:GLD), a leveraged ETF, or in futures.
The current pullback on the intraday 15-minute chart puts this market back into a Fibonacci support area which should offer good support. With the long Fourth of July weekend, I do not expect anybody will want to be short this market going in to the weekend. I expect to see some recovery later today from the lows seen this morning.
There are no guarantees in trading, but with all of the Trade Triangles positive on gold, I feel this is a fairly low risk trade on the upside. As always, you should protect your position with money management stops. If you'd like to learn more about money management stops, you can read about them here.
1. Start of Fibonacci measurement
2. Top of Fibonacci move
3. 61.2 % Fibonacci gold support at $1,318.80
Next week, should we see gold take out the $1,335 area, it will indicate an acceleration to the upside as this will clearly break over a long-term downtrend line that I have pointed out in earlier reports.
Here's wishing all of our US subscribers and MarketClub members a very happy, safe and joyous Fourth of July. We will see you all back here when trading resumes on Monday.
Have a great weekend everyone and good luck with gold,