Shinier gold seeking a new trend
Traders holding long positions in gold have been rewarded handsomely over the past few months. The metal's cash price has risen a bit over 5% since the beginning of 2022.
Short-term trading action has turned negative. RSI gives evidence that bulls and bears are now fairly evenly matched.
If a DMI bear cross (in which DI- advances above DI+) should form on the daily chart, aggressive gold traders could go short with an $80/oz stop and correspondingly sized take-profit levels. As price consolidation continues to grind, we would expect further DMI convergence—suggesting a reversal of position—before either our stop-loss or take-profit price was hit. Patience seems especially indicated here, and conservative traders might seek clearer vistas in other vehicles.
Short-term trading action has turned negative. RSI gives evidence that bulls and bears are now fairly evenly matched.
If a DMI bear cross (in which DI- advances above DI+) should form on the daily chart, aggressive gold traders could go short with an $80/oz stop and correspondingly sized take-profit levels. As price consolidation continues to grind, we would expect further DMI convergence—suggesting a reversal of position—before either our stop-loss or take-profit price was hit. Patience seems especially indicated here, and conservative traders might seek clearer vistas in other vehicles.