Will Gold Prices Crack $1,400?Gold futures in the February contract are trading lower by $9 at 1,464 an ounce reversing the gains that we witnessed last Friday continuing its bearish momentum to the downside.
I had been recommending a bearish position in the December contract from around the 1,460 level as it is time to exit due to expiration as prices are right near 1,457 while rolling over into the February contract at 1,464 and if you took that trade continue to place the stop loss above the 10 day high standing at the November 20th high of 1,486 as an exit strategy.
Gold prices are trading under their 20 and 100 day moving average as the trend remains to the downside as prices are right near major support, however for the bearish momentum to continue prices have to break the November 12th low of 1,452 in my opinion as that could possibly happen in this weeks trade.
If you take a look at the daily chart the downtrend line remains intact as fundamentally speaking all the action remains in the S&P 500 which is higher once again as I’m also recommending a bullish position in that market as money flows continue to exit gold so stay short while placing the proper stop loss.
CHART STRUCTURE: IMPROVING
This article was written by Michael Seery (CTA—COMMODITY TRADING ADVISOR) www.seeryfutures.com