VOLATILITY EXPANSION = GOLD - $2800
Updated
MACRO
- Gold is not only benefiting from the prospect of rate cuts but the added uncertainty of lingering inflation concerns given the latest CPI/PPI numbers. If FOMC's rate cut looks anything like ECB's Gold will outperform in the week(s) ahead.
TECHNICAL
Gold has broken out of a tightening range and volatility is expanding. This trade set up will be valid as long as Gold continues to hold above the Daily Bollinger Band and Close above its previous days low. I will look for a 9 candle count move here for an ultimate target around the $2700-$2800 level. That being said, I will look to take partial profits on any major impulses during FOMC meeting/rate cut.
- Gold is not only benefiting from the prospect of rate cuts but the added uncertainty of lingering inflation concerns given the latest CPI/PPI numbers. If FOMC's rate cut looks anything like ECB's Gold will outperform in the week(s) ahead.
TECHNICAL
Gold has broken out of a tightening range and volatility is expanding. This trade set up will be valid as long as Gold continues to hold above the Daily Bollinger Band and Close above its previous days low. I will look for a 9 candle count move here for an ultimate target around the $2700-$2800 level. That being said, I will look to take partial profits on any major impulses during FOMC meeting/rate cut.
Note
Not exactly the follow through I was looking for today... my trigger finger (stop) is getting antsy Trade closed manually
Gold is behaving like a limp noodle. It broke its support at 2580 level and is currently retesting it. It may find its legs but I am simply not comfortable with it's price action and holding this trade into FOMC without a cushion.
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