Last Thursday I outlined a strategy for capitalising on the fact that gold was range-bound. I.e., it was bouncing around between $1,708 and $1,756 an ounce. In that article I suggested placing “a buy order at around $1,712, with a tight stop loss at around $1,705” and, as the chart below shows, in late trading on Friday the price dipped to $1,712 and one of my buy orders got filled.
A 5 minute 2 day chart of gold (Click on the chart for a larger version)
Charts courtesy of IT-Finance.com
Gold bounced quite strongly in after-hours trading and is now hovering around $1,720. Right now I am maintaining my stop loss at $1,705, but I will look to raise it if/ when gold moves higher.