Preparing for a Bullish Break in Gold Futures

Good morning, Daily Direction readers!

Today, we’re looking at the Gold Futures (GC) market, as it could be setting up nicely for a bullish U-turn on the daily timeframe.

First, however, let’s recap where GC is on a longer-term timeframe…

On the monthly timeframe chart, GC is in an uptrend and is making higher highs and higher lows

The market is holding above its up trend line, which has been a reliable U-turn level since late 2018, and there’s a monthly up Fibonacci level at the 2,486.60 level.

Now, let’s get right into the current daily timeframe analysis for the GC…

Daily Timeframe Analysis

The GC daily timeframe is in an uptrend. And with the market pulling back to the top of the up channel, the GC is at a low price hitting a known level of U-turn.

There is also a daily up Fibonacci extension at the 2,114.60 level, which we are eyeing as a potential target if the top of the up channel holds as support.

As the market continues to move, we’ll examine the data and keep an eye on our timeframe charts.

Remember… It’s critical to utilize all of the data we get during our research. It keeps us focused and prevents us from making emotional decisions when trading.

While the GC’s short-term trend remains down, we believe the market will ultimately make a bullish U-turn and enter the buy zone.

DAILY TIMEFRAME

The long-term direction is up for the GC

1-HR TIMEFRAME

The short-term direction for the GC is down

THE BOTTOM LINE

We’re waiting for the GC to push into the buy zone

Learn more about the Daily Direction Indicators here…

One-Hour Timeframe Analysis

While the monthly and daily timeframes are both bullish, we want to see a push above the counter trend line on the one-hour chart.

Once that happens, we will look for bullish counter trend line breaks in the buy zone for buying ideas toward the daily up Fibonacci extension at the 2,114.60 level.

As we watch the market move, keep an eye on those charts and brush up on my free trading resources.

On the one-hour chart, we are waiting for GC to enter the buy zone before we look for bullish opportunities.

The Bottom Line

The GC is still pushing bullish over the longer-term monthly and daily timeframes, but it is not yet in the buy zone on the one-hour chart.

However, if the daily timeframe does indeed U-turn at the top of its up channel, the one-hour chart should push into the buy zone and begin to offer us some bullish opportunities.

For now, please read my free articles to understand more about how we pick when and where to enter a market.

Keep On Trading,

Mindset Advantage: Pace Yourself

You can’t make a full-time career in a day, but you can blow it in a minute.

Slow the [expletive] down! Time and time again, we talk to traders that we know are thinking…. “Boy, I’ll never retire at this pace.”

What comes next is as predictable as death, taxes and your mother-in-law’s glare. 

Contracts go from one… to three… then five or more. Stops get pushed back. Losses pile up. More trades take place to cover those losses.

And then it’s over. Good night, Irene… The account has been cleared.

Just pace yourself. There’s plenty of money and plenty of trades to take. Stick to your risk/reward ratio. Hold to those stops.

Take the losers with the winners, and become consistent. Build your empire with time and care!

Traders Training Session

Recognizing Market Patterns

Stay tuned for the next edition of Josh’s Daily Direction.

And if you know someone who’d love to make this a part of their morning routine, send them over to joshsdailydirection.com to get signed up!

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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