It is Wednesday evening and not much is going on anywhere, including our list of symbols.
There is one that looks promising, however. We don’t like to say thinks like, looks promising and the such. We are more like Yoda: we do or we don’t, there is no looks like, etc in trading…pretty sure it was Yoda that said that.
Let’s take a look at the chart…
It is a chart of UGL which is our stock market proxy for gold. It mimics the price of gold as it rises. What we can see that the price and the 8 EMA (red) have closed above the 21 EMA (blue).
This exciting condition is on top of the set-up which has the 21 EMA (blue) above the 55 EMA (green) which suggests to us that the trend is up, allowing us to go long which is the signal we have received.
Just one little hold back is the resistance level. I have put a horizontal line at $61.57. We will put our stop-buy just above that level at $61.67. We have a diagonal trend line as well as the horizontal. I want to see both of those lines broken before the trade is triggered. This will happen if the price hits $61.67.
If it does, all the details such as capital allocation and the stop-sell (protective) will appear here.
That is about it. If you have any comments or questions, please drop me a line at: firstname.lastname@example.org.