Friday, March 6, 2009

Trade: Gold

First screen:  the 4-hour chart for gold

Gold futures have staged a steady climb to reach a tad above $1,000 before reversing course and went through an eight-day losing streak.  On the H4 chart, the bullish divergence between price action and MACD-H is screaming buy.  The downtrend is extended and now ready to reverse course once again as traders see it as an investment safe haven.

Second screen:  This is the hourly chart for Gold 

On the hourly, there is a rare triple bullish divergence being formed -- the price action makes consecutive lower bottoms while the MACD-H makes higher bottoms.  Notice also the long, extended downtrend -- waiting to be reversed, again confirming the message we have seen in the 4H chart.

Third screen:  the entry

No comments: