Gold Provides Another Calculated Trade

I’ve sent out a few charts this year to give the update on the gold trade. I’ve been trading Gold using chart patterns since 2008. This was first time I went on CNBC and stated it would Gold would hit $1500 back when it was trading at $850.

This is Mark Haines, Erin Burnett and I back in 2008. I will miss Mark deeply.

So far in 2011 Gold stills trades very well according to patterns.

(click to enlarge)

** Macro Pattern #1
The Descending channel that broke to the upside after the January Correction
Entry#1 was February 3rd when it broke it’s Descending channel and the entry was around 132

** Macro Pattern #2
Break Out into New Highs after nice upper consolidation
Entry #2 — April 8th around 140.50-141

**Macro Pattern #3
Break out continuation
Entry #3 — April 14th above 143.85-144

**Macro Pattern #4
May 2nd was your sell signal at $153.03

**Macro Pattern #5
Tight lower wedge- Range resolution
May 20th we saw a lower consolidation- market wasn’t sure if we would get continuation to downside or a move back up
Gold gave you another long entry after if resolved the upside above 146.25

If you entered gold based on my call last Friday to re-enter- this is a spot to lighten up after a nice weekly move.

Disclosure: No Position

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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