GOLD MARKET FLYING HIGH BUT LOOKING OVERBOUGHT?

Hey Traders another week in the life of trading so today we are looking at Gold. Talk about a rally this thing has some serious momentum!

Gold has officially launched from it's rocket ship🚀

So where are we now?

I mean imo I think we are really overbought and at least due for some time of correction. It's kind of hard to make $$$$ buying at the high.

However the trend is our friend and we are definetly in an uptrend so best way to trade the trend is buy when market pulls back to the trendline.

Scenarios today are:

Bullish- I would say 3850-3900 looks like a good place where the market could pull back before getting back onboard the rocketship. Looks like good area to buy with risk stop below support around 3800 or lower.



Bearish- Would not consider shorting at this time unless market forms some type of top formation or at least breaks below really significant support like 3800.



Commitment of Traders- The Funds are long Gold with 267,000 long positions once they get to 300,000 last time history shows they start closing out some of those longs before they buy back in this can cause market to fall. But overall they are still extremely bullish but soon they are going to become imo overcrowded bullish and thats when the market can sell off dramatically. There is no report friday because of govnment shutdown so we will have to wait until report resumes to see the Funds Next Move.




Good Luck & Always use Risk Management!

(Just in we are wrong in our analysis most experts recommend never to risk more than 2% of your account equity on any given trade.)

Hope This Helps Your Trading 😃

Clifford


RISK DISCLOSURE

TRADING IN THE FUTURES AND FOREX MARKET INVOLVES SIGNIFICANT RISK. ALWAYS CONSULT A FINANCIAL ADVISOR AS HIGH RISK ASSET CLASSES MAY NOT BE SUITABLE FOR ALL INVESTORS. THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY ASSETS. ALL IDEAS ARE MADE FOR EDUCATIONAL PURPOSES. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING.