Hubert Senters here.
Let’s take a look at Gold. Gold is breaking out. It’s up $24. So if you’re not already long Gold don’t get long it today. Wait for a pullback so I’m going to reiterate my rules for Gold as a filter mechanism. Number one I want it to be above this thing which is called the cloud.
If it’s above that thing then I’m going to slant most of the time towards the long side of the trade. And then what I’ll use here is right here #24.4. That means it’s up 24 points and 40 cents basically $24.40. If you would put a one contract trade on you’d be up $2,440.
That’s how that thing works. That’s how Gold works. Then you can see we have a nice little ascending triangle here and it broke out. It went down first and then up. And now it’s breaking out to the high side so what I’m going to do is I’m going to update the targets.
I think Gold is going to continually go higher overtime. Nothing go straight up. Nothing go straight down. But I’m trying to give you an area of where I think it’s going to go so. We’re going to use a fib. We’re going to go from this low right here to that high right there and then to this low.
The next target which will probably hit is going to be $1,846. We’re really close to that. We’re only 4 points away from that then $1,865 and $1,877. Today, it’s up $24 points. The average true range for Gold right now is around $20 points so it might go up or down $20 points in a day.
Hubert.
