Where are the 'stops' and 'bargain hunters' in Gold?
Precious Metals have softened recently after continued liquidation, stop-loss selling, and de-grossing pushed Gold futures down to a value zone of 22300/OZ on the June futures contract. Since then, bargain hunters have stepped in, driving futures $30 off their lows.
The potential for a strong recovery in gold is on the horizon, especially if miners strengthen and ETF inflows follow. While geopolitical safe-haven flows have eased recently, with Middle-East tensions waning, it is often the calmest before the storm.
'Stops' refer to the price levels at which traders exit their positions, and understanding these can provide insights into market movements. For the June gold contract, pocket support remains at $2299-2294, with crucial trendline support at 22286/OZ, where stops will most likely remain. On the upside, short sellers will place their stops just above $2400, where any breach should allow prices to run back to all-time highs.
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CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
The potential for a strong recovery in gold is on the horizon, especially if miners strengthen and ETF inflows follow. While geopolitical safe-haven flows have eased recently, with Middle-East tensions waning, it is often the calmest before the storm.
'Stops' refer to the price levels at which traders exit their positions, and understanding these can provide insights into market movements. For the June gold contract, pocket support remains at $2299-2294, with crucial trendline support at 22286/OZ, where stops will most likely remain. On the upside, short sellers will place their stops just above $2400, where any breach should allow prices to run back to all-time highs.
tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
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