Chicagostock Trading

Chicagostock Trading

Gold 61.8% and +$126

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 After gold tested its May lows of 1526.7 on the 30th, the market put in lows of 1532.1, holding those lows and reversing.  This showed signs of life and defense of these lows and the market most recently pulled into retest this 1532.1 level with support at 1548.  Today May 1st this was tested with a 1545.5 low and the market held to reverse and squeeze higher.  This move has caught sellers off guard and is retracing to test its major resistance of 1627-1672 of where the market failed in May.  This will be an area sellers must look to defend as a move past 1672 reclaims the ball for gold bulls.  

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Buyers of 1548 level all out on this move for +126 in a day as squeeze has retraced 61.8% of breakdown.

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240 Minutes on Gold

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GLD Chart Update

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The November 2011 Gold swing short that made $46k

In November, the gold bounce from 1535-1804 was recommended to sell against.  By December gold fell back to clip the 1535 lows with a new low at 1523.9 before turning back.  This offered oppurtunity for aggressive traders to short the market and profit on the way down, along with oppurtunity for gold bugs to use the pullback as an area to defend and buy physical considering the market was $300 more just a month back.

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