Gold Mini Contract Trade Entry Point with Stop

Gold futures in the April contract are trading above their 20 day but below their 100 day moving average which is pretty close at 1,275 going out this Friday afternoon in New York at 1,267 up about $10 after closing last Friday at 1,240 having one of its best trading weeks in quite some time. The next major resistance in gold is at 1,280 and if that level is broken we believe a bull market is underway as the gold market looks like it's finally bottomed entering new 2 month highs as the trend line has now been broken as prices are starting to climb higher.

We have not been particularly bullish gold for quite some time but things have changed and this is the most bullish we have been as we love the chart pattern on the daily chart and think prices have bottomed so if you're looking to take a shot to the upside my suggestion would be to buy a mini contract at today's price placing a stop below the contract low of 1,180 risking around $2,600 as last Friday's monthly unemployment number was very disappointing once again sending investors into treasury bonds and gold and we do believe gold prices are headed higher.

Last year gold was down 32% & was the 1st down year in 12 years and we do think prices may have gotten too low as volatility has now entered the stock market which is pushing money back in the gold sector and we do think prices will hit 1,300 the next couple of weeks as we are in the start of a bull market once again.

Trend: Higher
Chart structure: Excellent

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