Trade of the week: long gold
We would like to use the current retracement in the long-term gold uptrend to go long at $4015 with a stop loss below the 28th of October low at $3886 and an upside target in the $4300 region.
(Partial video transcript)
This week's trading opportunity
Axel Rudolph: Hello and welcome to "Trade of the week" on Monday 3rd November and I'm back. And, thank you Chris Beauchamp for filling in for me. So, what did Chris do trading-wise in the last two weeks? I'll tell you about that in a minute. But, before I do so, I'd like to talk to you about my "Trade of the week" for this week, which is to go long gold.
If you look at the daily chart of the gold price, we can see that we've had a really good correction, the first one in several weeks. And that has taken us back down below the psychological $4,000.00 per troy ounce mark. But today you can see that we're trying to, basically, bounce back here off that $4,000.00 level and it looks to me as if we're consolidating at the moment.
But I wouldn't be surprised if we were to see another attempt at these record highs we made just a few weeks ago, around $4,350.00 or so. So, the "Trade of the week" is to go long gold.
Previous weeks' trading outcomes
And, coming back to Chris's "Trade of the weeks" from last week and the week before. So last week he went short, I believe, US crude oil.
And I would agree with this analysis in that we have a clear downtrend here in place. And Chris was basically selling into a rally. And it did look good at first, but right now we're basically more or less at his entry level with the same stop. So I think his stop was at $62.50 on the Daily Financial Bet, and that is still in place. So that trade is still valid.
And then the week before, Chris also had a trade on which was long the German DAX 40 index. And that started off really well here on Monday with that really long, big candle, as you can see here. But since then that trade has really sort of fizzled out and we are back, more or less, where we started at the entry level from that Monday, two weeks ago. So, that trade is still valid. I believe his stop-loss was 23,850. But yes, that one is still ongoing.
This week's trade in summary
Coming back to this week's "Trade of the week", it is to go long gold at current levels around $4,016.00, with a stop-loss below last week's low at $3,886.00, and an upside target around $4,300.00.
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