Tommy Humphreys | Dec 31, 2014 11:27AM ET
I bought a trading position in Gold this morning at $1184.30/oz (February 2015 futures). The final day of 2014 gold dump offered what I consider to be a highly attractive risk vs. reward swing trading entry point in the precious metal:
Source: Signal Financial Group
On the daily this possibility would be negated on a move below $1170. Meanwhile, a breakout above $1240 would target ~$1300 and offer a strong probability that the November low marked a major low on multiple time-frames.
The hourly chart offers a nearly symmetrical inverse head-&-shoulders possibility with a neckline near $1210, however, a close below $1180 would negate this possible interpretation.
I am looking for a $50+/oz gain on this trade and I will be stopped out of the trade on an hourly close below the $1170 level. Happy New Year and good trading to all CEO.CA readers in 2015!
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