Slow week, I guess. We have an open trade in UBT which was detailed to you on Tuesday.
Today, we don’t have a trade, but I thought I would remind you of the situation with the proxy for the up move for gold, UGL.
UGL is the ETF (exchange traded fund) that goes up when gold does.
You can see above that the 21 EMA (exponential moving average) blue, is above the 55 EMA (green), this is an uptrend in our world of simple definitions. We would now look for a trigger to go long since we want to trade with the trend.
You can see that the price and the 8 EMA (red), our triggers, are above the blue EMA. This would normally mean “giddyup”, but we have an impediment in the form of a resistance level just around our trading point. We would normally wait for a close above that level and then place a stop-buy just above the candle that did the closing. We have done so at $65.37. If the price moves above that level, we will be in automatically.
Trade details will appear here as if by magic should that happen.
A treat for you: the point and figure chart for gold.
It is a thing of beauty, is it not?!
I won’t explain the workings of this chart other than to say that, a trigger to buy is close. You can see blue Xs to the right, one column to the left is Os, and to the left of that a higher column of Xs. When the column at the furthest right gets higher than the previous column of Xs, it is giddyup time in the Point and Figure world.
That is it for tonight. Our next instalment will be the Weekly Round up. That time of the week when we go through all the charts whether there has been action on them or not.
Any questions or concerns, please drop me a line at: email@example.com.