Gold/Silver: Time to get technical

We just experienced one of the quieter weeks for Gold with all the distractions and headlines focusing on the "Delta Variant" and its potential negative impact on the reopening trade and Small Cap stocks. The Russell 2000 came under significant pressure along with Crude Oil on Monday and Tuesday, followed by a "V" shaped recovery that extend gains into the weekend. The significance is that volatility of specific asset classes will continue throughout the rest of the year due to the crowding of those risk asset exposures. Essentially everyone owns those same financial products, and when a new "Narrative" takes hold, everyone collectively runs for the door. Remember, the markets take the elevator up and the window down. Cutting out the narrative this week and focusing on the technicals of one of our high conviction plays, we have been monitoring the constructive technical chart formation in the Gold market. If we do see a "risk-off" appetite in the equities, it could give Gold the spark it needs to punch a ticket through $1850/oz. To further help you understand the quantitative analyses of the precious metals markets, we created a free "Gold Trends Macro Book," updated with silver slides. You can request yours here: Free Gold Trends Macro Book.

Daily Technical Gold Chart

Gold continues to hold above key psychological support at $1800/oz while firmly above trendline support at $1775/oz. We are monitoring for another "Breakout" above the downward sloping channel near the $1825-1835/oz pocket resistance. If you are one of our clients or looking to become one of our clients and would like to position in Gold for the long run, we suggested considering using FOUR Micro 10 oz December Gold contracts per $25,000 and buying TWO at 1775 and TWO at 1685, with a stop at 1640. Doing such would ideally risk $3,600. We would look to a gold target of 2100/oz, which would allow for a profit of $14,800. If you would like to learn more about the strategies we are implementing or learn more about technical analysis, we created a guide to provide you with all the steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Precious Metals.

Good luck and good trading, Phillip Streible Chief Market Strategist 312-858-7303 Follow us on Twitter: @BlueLineFutures Follow us on Facebook: Blue Line Futures Facebook page Subscribe to our YouTube channel: Blue Line Futures YouTube channel Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

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