My Swing Gold Play Before BRICS
Updated
TLDR: I'm bullish on GLDG and going long for a swing. Entered twice since last month to build a position before the BRICS summit later in August.
I've been following and studying gold for the past few months, and I like Goldmining Inc's (NYSE:
GLDG) projects and vision for the industry. The company also recently had a successful Nasdaq IPO (USGO).
There are a few reasons why I'm going for a long with GLDG:
- Gold (XAUUSD) is in a good position. 5% in the year, was ~13% at its highest, and 18% growth since 2022 lows.
- The BRICS summit on August 22nd-24th, there are talks in which the participating nations will discuss a new currency that the signed nations will use instead of the dollar, and that currency will be tied to the gold reserves.
- Banks and nations across the globe are announcing the purchase of more gold, loading more to expand their reserves in light of the increased need for diversification since 2022's market downtrends and inflation.
Also, GLDG's chart interests me. There's a downtrend since April 2023 that has met lower support that we already saw last year, and since then, there has been a test of higher levels.
I believe that the chart could play nicely and spike with more news coming from the BRICS summit later this month.
I entered on $0.90 on July 28th and $0.89 on August 11th. Stop at previous support ($0.85), which will be a ~3.75% loss in case the chart goes the other way if nothing happens on BRICS. Hoping to get at least 10% on a potential long exit.
I've been following and studying gold for the past few months, and I like Goldmining Inc's (NYSE:
GLDG) projects and vision for the industry. The company also recently had a successful Nasdaq IPO (USGO).There are a few reasons why I'm going for a long with GLDG:
- Gold (XAUUSD) is in a good position. 5% in the year, was ~13% at its highest, and 18% growth since 2022 lows.
- The BRICS summit on August 22nd-24th, there are talks in which the participating nations will discuss a new currency that the signed nations will use instead of the dollar, and that currency will be tied to the gold reserves.
- Banks and nations across the globe are announcing the purchase of more gold, loading more to expand their reserves in light of the increased need for diversification since 2022's market downtrends and inflation.
Also, GLDG's chart interests me. There's a downtrend since April 2023 that has met lower support that we already saw last year, and since then, there has been a test of higher levels.
I believe that the chart could play nicely and spike with more news coming from the BRICS summit later this month.
I entered on $0.90 on July 28th and $0.89 on August 11th. Stop at previous support ($0.85), which will be a ~3.75% loss in case the chart goes the other way if nothing happens on BRICS. Hoping to get at least 10% on a potential long exit.
Trade active
GLDG's downtrend continues, breaking my upside trendline, on its way to my support area at $0.85 for a stop loss. Other than that, though, the trade plan continues as explained before, and we are looking toward the BRICS summit next week.
Trade closed: stop reached
Stopped at previous support around $0.85. It will be interesting to see where it goes next. I will continue following.
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