Wednesday, July 22, 2009

Trade 30 setup: Going for Gold

The chart has a broad support level from march 2009 onwards.

The play is
1/ Price consolidation = opportunity to get long
2/ The long term weekly trend is up
3/ the risk/reward is 2.77/3.19 (3 to 1)
4/ Gold price has been rising and cleared a technical 940 level
5/ Macro scene provides a couple of interesting gold upside - US dollar fallling, euro bank inflation, inflation possibilities, hedge funds getting gold as diversification.