Gold Swing Trade Idea

METALS

Gold has been in rally mode all year (2015) and is now approaching a great technical spot for a swing trade. With this trade idea we need to take a contrarian stance to establish this position.

Below is a weekly chart of /GC. Gold is in a nice descending wedge which forms normally in a downtrend as a continuation pattern. We are looking for gold to sell off and for a continuation of its down trend.

GC1

 

Below is the daily chart of /GC. We are looking to sell short around 1300, stops need to be placed above 1325 and our primary target is the lower horizontal support line of the descending wedge. We do have multiple levels for profit taking, but our analysis is for gold to pullback to the 1200-1180 level.

GC2

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