Hubert Senters here.
Let’s talk about Gold again because it’s breaking out. And I think it’s going to go substantially higher. And I don’t really want you to miss the moves. There’s couple of things happening in the Gold market. Number one a lot of people are getting scared again to covid and you’re seeing spikes and stuff like that. It will tend to put people in several different positions.
They’ll either go to cash. They’ll jump out of stock market or if they jump out of stock market they may put their money to work and Gold precious metals, all the metals are rallying right now. They might put it in bonds. Bonds are not put in there right now because bonds aren’t moving. They could even potentially do it and crip those.
Here’s a couple of things you look out for Gold. So in Gold your chart looks a little weird. I’ll clean up just a second. The Average True Range on Gold right now is $22.71. And it’s actually believe it or not it hasn’t turned around and started rising or going higher. It’s going to start doing that because we’ve had a couple of days where we’ve had 20 plus point moves on the daily.
Now, this Average True Range just tells you it’s like a batting average just like hey, this is the average thing amount of price movement that this thing that you’re looking at is going to have and it’s just looking back in the pst 14 days the Average True Range for the past two weeks based on Gold has been $22.71.
Obviously the more the wider the range the bigger the Average True Range. The smaller the range during the last two weeks the smaller the range. That’s where we’re at there. It’s still actually believe it or not going down it slow to reverse because it’s a 14 period average so it’s going to take several days for it to reverse itself and go higher.
But that’s a good thing. And second thing you look for is you don’t want to trade Gold when it’s not trending because it’ll pick your pockets a lot. So what you try to do is you put the ADX on here. And you see where the ADX is above the green line.
This is the threshold line. Above $20 means it’s trending and it’s happy and probably it’s going to be a little bit easier for you to make money. So here for a while it has been non-trending. It’s been hard to trade.
It’s right now crossing $20 so it’s going to breakaway to the high side. And then you can remove that and now you can see right now we’ve got this picture. Now, we thought it was going to go higher because it is above the cloud the turning line, the standard line I knew because nice little depending on here. And first it went down and then it went up and then we put targets on it.
So our targets are effectively all it have been hit like this one at $1,872. Today’s high was that means right on top of $1,872. I mean within 40 cents. I’m going to call it, it hit it. So now I’m going to figure out what’s the next target.
There’s a couple of different ways you can do it. You can go back a little bit further in time and do a target or you can wait for the next pullback. I think it’s going to go above $1,900 on the way to $2,000. Pay attention to Gold. A good filter for it for me is it’s now a valid uptrend. Anytime Gold is up more than $3 points on the day on net change.
It’s probably going to be up $12, $18 or $20 points so I usually say $18 to $20 points. Take a look at Gold if you haven’t ever look at Gold you can also trade the ETF GLD if you don’t want to trade futures like me because I’m crazy.
Hubert.