Good Tuesday, Traders!
With US stock and bond markets still in turmoil on any given day or week, one of the best alternative assets is providing some great trading opportunities so far this year.
Gold is the ultimate trading hedge for many traders and has been glittering with opportunities and actual trading gains so far this year.
Year to date, gold on a cash basis alone is up by nearly 8% in price, with gold futures contracts (GC) amplifying that gain by multiple folds.
And periodically this year, including from Jan. 21 through March 8, gold has soared even more, gaining nearly 12% alone for that trading period on a cash basis.
Recently, gold has traded back from the gains into early March and has been range-bound for a while.
But that’s changing this week with gold gaining again and setting up a great trade idea for the week for gold futures contracts.
Gold Futures Chart
Here’s how the trade shapes up in the chart…
The Step by Step Trade Setup
And here’s how the trade should set up according to the research…
The Gold (GC) one hour time frame is in an up channel. The market hit the bottom of the channel and is pushing bullish towards the top of the channel.
Entry: Counter trend line break-bullish above the bottom of the channel.
As long as the market stays above the bottom of the channel, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader/Destination Trader long opportunities.
As the gold market further advances with our target and limit prices in sight, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day for more of my futures contract trading tutorials as well as some additional trading ideas!
And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!
Keep On Trading,
P.S. My top associate here at Traders Agency, Ross Givens, has a breakthrough trading strategy for identifying stocks that are trading under-the-radar for stealthy gains in the making… Way before other traders catch on to them!