It's A Jailbreak - Gold Is Breaking Out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
One of the big things we learn as traders and investors is markets never announce themselves. We know that trying to predict outcomes based on news, politics and other outside factors is a fool’s game and the only true way to enter high-probability trades is to let the market footprint guide you.
On May 30, after being bearish, we identified that the gold market was changing, and it appeared to be time to start to buy. The footprint indicated that the gold market was no longer interested in going down and buyers were starting to show up. Sure enough, over the next six days, gold rallied right to our resistance level of $1,350 before failing and pulling back a little.
A new footprint was born, and the gold market found a resting area also known as a congestion period. For the last few days, we have indicated that gold was getting to break out of the range and based on the footprint, that move should be higher. This morning gold is breaking out, up $15 and trading at $1,358. It’s a jailbreak, which has also given us a new footprint. Support is now $1,350 and $1,400 is in play as the next major target.