(click images to enlarge)
There is an attractive setup taking place in Gold Futures (/GC) at the moment. In the first picture, note the extremely strong uptrend support line (yellow line) that has been in tact nearly THREE YEARS! Below the three year uptrend support lies secondary support via the 200 day simple moving average (light blue line).
In the second picture, we show the symmetrical triangle (purple lines) that recent broke in a bearish manner. The move measures to 1350. Shortly after the bearish symmetrical triangle break, Gold pushed below the three year uptrend and 200 day simple moving average support.
That’s a major bearish technical development. With today’s bounce to 200 day SMA support turned resistance there is a solid reward to risk scenario in tact. We like to compliment these types of situations with high probability of success options strategies, and we intend to do just that for our members.