Trading gold in a range-bound market: Update

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)

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.

  1. May I simply just say what a relief to uncover an individual who truly understands what they’re discussing on the net. You certainly understand how to bring an issue to light and make it important. More people have to check this out and understand this side of your story. It’s surprising you are not more popular because you definitely have the gift.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>