Gold Is Making Moves And Could Be Our Next Trade ⏤ Here’s The Level To Watch
– ETF Watchlist –
For those who are closely watching this market in case of a turn around or at the very least a pull back, we are getting close to the area where that has a higher probability of taking place. For example, the next big level to watch on the S&P 500 is 4300 and we just came up to that level before rejecting down, 4299.28 to be exact.
This zone has a lot of resistance overhead, which is something traders will want to look out for. While this doesn’t suggest the market will make a U-turn here, it does suggest that there will be more and more resistance ahead.
To find these levels and zones of resistance, we must first look back on history for when prices were in this area before. We can use history to show us where the pockets of supply and demand might be and then map out those zones in the process.
SPDR Gold Shares (GLD)
One trade idea we are on the look out to execute on is gold. With gold approaching that 2000 mark once again, we would like to see it overtake that level before establishing any long plays on it. With all the attention gold is attracting once again, we want to be mindful of the rise in price that purchasing could spur. Central banks and countries around the world have once again taken to stockpiling the shiny metal.
Whatever the reason, it isn’t much concern to us, but the fact that this buying is taking place is what we want to pay attention to. The big boys aren’t the only ones buying gold either. Even retail investors are adding gold to their portfolios in order to prepare for whatever economic turmoil may be heading this way.
Another positive development for those investing in gold, the recent meltdown of the crypto market following the SEC suing crypto companies Binance and Coinbase. Again, whether this is good or bad for crypto is not really a cause for concern, however, this event may push more people into the safe haven gold has traditionally been.
So, again, keep an eye on gold taking that 2000 level for another push higher.
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Good Luck With Your Trading!
Christian Tharp, CMT