Background
Gold has spent a week or so retracing since topping at $1,297.4/oz on April 17. Yesterday was a good day for the bears as we saw selling from $1,279.9 to $1,262.8, posting a red candle with Marabuzo resistance at $1,271.7, which is also an intra-day reference.
We have $1,261.1 and $1,256.6/oz cited as important supports, so we expect to see buyers returning sometime soon as long as these levels hold.
Management and risk description
Our stop is set below $1,249 to start with but once we retake $1,278/oz we’ll move to entry or better.
Parameters
Entry: Buy at market ($1,266/oz currently), and a dip to $1,262, and a break above $1,272
Stop: Initially below $1,249/oz
Targets: $1,295, $1,320 and $1,338/oz
Time horizon: 1-2 weeks for the first target, 2-4 weeks for the other two