Since bottoming out at $1616.27 on November 2, gold has rallied more than $200/oz to $1824.51 on December 13 for a gain of some 12.9% over a 7-weeks period. That period was also a period of dollar weakness. (The dollar is inversely correlated to precious metals). From the high of $1824.51, gold dipped to $1773.79 last Thursday, representing 2-days of corrective of some $2.8% or a loss of $50.81. This is immediately followed by a 3-wave rally to tonight's high at $1823.80 (so far). From a risk/reward perspective, this represents a low risk/high reward opportunity. Tentative target is for a decline to re-test the November 23 low at $1723.25.
Sold @ $1817.27 - Thu, Dec 22, 00:11am.
Stop @ $1826.00.Moved Stop to $1816.00. Stopped Out @ $1816.00 +$113.03 Tue, Dec 27, 23:10pm
Target @ $1725.00