There’s money to be made in gold…

Good morning, Traders! 

We’re back in gold futures (GC) today as we prepare to find our daily direction!

Overall, both the short-term and long-term outlooks for GC are bullish. The market is still sitting at the short-term area of support and we expect it to continue pushing upward.

What’s interesting is that we’re seeing some pretty wild swings at the short-term level. But that doesn’t mean we give up on the overall trend. Just like in life where the tax man is going to come and get his share, sometimes the market wants a slice of your profits! So let’s dive into the analysis and see why we’re still positive on gold!

Daily Timeframe Analysis

The overall long-term movement for the GC is still up. We see the market making higher highs and higher lows in the daily timeframe chart (see below). The Fibonacci extension is headed for the 1810.1 price point, which is a +338 tick movement.

Remember, so long as the market continues to follow along the support line, we know that the overall trend will remain bullish. And that’s what we’re seeing in the below daily timeframe chart (light red line):

Chart the channel

The daily timeframe chart for the GC shows that the price has broken bullish through the counter trend line (short diagonal lilac line) and is still moving upward.

If the market can stay above the known U-turn point of 1772, we can take what we see in the daily chart and turn to the one-hour timeframe to confirm our buy zone entry.

One-Hour Timeframe Analysis

Turning to the one-hour timeframe and we see some seriously crazy swings in the price movement. We’ve hit our stop and bounced right back up toward the bullish push!

While these sorts of swings can be frustrating, it doesn’t mean we give up. It’s just the market doing what the market does. If we redraw our counter trend lines, we can see that the market direction is still up for the one-hour timeframe. This is where we need to be strategic in our analysis as we await the next run-up!

Chart the channel

The one-hour chart reveals that while we stopped out (light red line), the price recovered and went back up. The overall trend is still bullish.

We can clearly see that while the market stopped out, it did rebound and return to it’s upward movement. And as you can see in the next chart, it’s preparing to break our counter trend line bullish. So, again, the overall direction is still up despite the wild swings.

The Bottom Line

The long-term and short-term outlooks for the GC are bullish. We see the market hitting higher highs and higher lows. And while we stopped out in the one-hour timeframe, I’m confident that the market is presenting buying opportunities. We just have to be strategic with our buying strategy! 

The Bottom Line

The overall trend for the GC is up. We see both the daily and one-hour timeframe revealing an upward trend. In this chart, we see that the price is preparing to break another trend line and continue bullish (diagonal blue line)

And without my analysis, you’re going to have a hard time trying to trade these markets. What do you do when you see these swings like we’re seeing in GC? Don’t get stuck in a rut trying to figure this out all by yourself. Let me help! That’s why I’m here.

Mindset Advantage: Ignore The News

Put the news in its place – once and for all.

Sure, they’re entertaining. They have a lot to say. And yes, they bring you information.

But when it comes to your trading, those talking heads can cost you a lot of money.

It’s their job to entertain and retain viewers. They aren’t paid to give you the entry or exit you really need, let alone an insight that will provide an advantage.

Let’s face it: by the time it’s coming out of their mouth, the market has already responded. 

So don’t let them whip you into a frenzy. Don’t take the information they provide and place a trade on it. Forget those talking heads!

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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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