This week’s Chart of the Week is an exclusive coverage of the commodity Gold. This week’s Chart of the Week is similar to how we walk subscribers to our Newsletter through gold trades on a weekly basis. What we are looking at here from a technical perspective is a collision between a triangle formation and a technical price channel which is setting up for a bullish outbreak for gold prices. The $1,300 level for gold has clearly served as a top multiple times this year and it will most likely be tested over the next couple weeks. However, first we are looking for a pullback to ~$1,270-$1,275, the bottom of the triangle formation as displayed above, early this week which should put the RSI around 40 and then begin a move higher into the latter half of the week. To the upside we watch $1,300, $1,310 and $1,350. Another factor the we are considering for this trade is how a December Fed interest rate hike is currently completely priced into the market. We have seen this occur before and the result was an immediate rally following the announcement of an interest rate hike which is followed by a more dovish than expected statement. We are expecting the same scenario with the December 13th Fed meeting. That said, we ultimately see gold prices at $1,350 by the end of December and this week serves as a great opportunity to begin or add to long positions.
Farewell and Trade Well,
Founder and Editor-in-Chief