Can Gold Rally Hold?
Gold has broken out to the upside.The big question from here is can it hold? The answer is not an easy one butthe simple fact that gold has been consolidating for months, continued to makehigher lows and finally pushed through $1,220 suggest the answer is yes.
This is the time when traders andinvestors get confused about who and what they are. As a trader, if you arelong gold as a trade, you should have an exit plane if the $1,220 level failsto hold. As an investor, you should have an exit plan if gold breaks below $1,180,the major support level.
Market participants must definewho they are and what their expectations are. This all starts with awell-defined trading plan which should leave nothing to emotionalinterpretation. We think gold will continue to rally and will hold our investmentposition. Our trading position we will exit under $1,215, take the profit andrun.
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Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. |