Gold may be able to extend its rally if it breaks through a key level now being tested. That was the verdict from John Hoagland at TopstepTrader.
Gold futures (@GC) have spent six days at or near 1308. Hoagland said odds may favor a breakout above that level because it’s made steadily higher lows during the last two weeks.
“Right now it looks like the market is trying to work its way through all the sellers that may be above this level,” he said on today’s Market Forecast video. “The rising triangle is kind of friendly to a higher price in gold.”
He also liked how @GC held its ground after rising from 1300 in today’s early hours and remained above its opening range. That kind of price action is “a sign of possible, stronger buyers,” Hoagland said.
The battle plan? Wait for a breakout through 1308, and program a stop-loss below it. “The nice thing about it is, I don’t have to risk a lot,” according to Hoagland.
Hoagland, Senior Performance Coach at TopstepTrader, reviews key futures contracts and events every day on YouTube. His company evaluates traders based on objective criteria, looking to fund successful candidates with the company’s capital.
@GC has trended higher since October, rebounding from a selloff in the middle of 2018. The yellow metal could also be impacted by this afternoon’s Federal Reserve meeting on monetary policy. The central bank’s recent shift toward lower interest rates is potentially bullish for gold and silver.