Gold Trading Sideways at the Highs and Crude Sets Up for a Fall

Lets take a look what gold and crude oil are doing right now so we can prepare for tomorrows price action.

(remember that tomorrow is Veterans Day, markets are open, and so are we)

There’s no news tomorrow, so no catalysts to prepare for, lets look at the crude oil chart first.

Starting with the slower timeframe, 89 range chart

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We can see a bullish price channel (yellow trend lines) and we are trading at the highs.

Notice that our auto levels indicator picked up on 87.39 as the correct swing low to plan our entry short, and we can see clear path down to 86.85 for our profit target.

55 ticks of open profit will be my main focus as this market exhausts off these highs.  with no news tomorrow, and a less-then-desired inventories report today i expect this market will want to come on down to 86.00 by the middle of tomorrow’s trading session.

Focus on the entry short below 39 using a 2-step price reversal and take profit at our trigger line which is currently at 85, but may be higher as the trade develops, so keep an eye on the final target as this trade plays out for you.

Looking at the faster (34-range) chart we can see this same type of opportunity confirmed again

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I can see our indicator picked up on support at 61 and 39 before we get into a location where we can get short.  this confirms our entry short below 39 down to 85, so this trade looks promising.

With crude oil setting up for this nice tumble, lets take a look at gold, which is sitting sideways at the moment after an impressive day!

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There is a lot going on with gold right now…we’re at the highs of the price channel (yellow trend lines) and weve recently come off the highs so we have a wedge pattern to deal with

I know better than to buy the highs of this channel because it will be tough to predict when it will successfully break the highs…so I would prefer to trade short here.

I have two options for gold; i can sell the highs at 1424 with a price reversal trade, or i can wait for price to come down to the open space below 1380.0

It’s highly likely that we will get a nice reversal off the highs, so thats the best option, but if this market contiinues to weaken I will certainly be excited to short the gold below 1380.0 because that puts us in striking distance to the lows of the price channel.

Look to cover half of your position at 1365, and then cover the final half at 1340, the bottom of the price channel.

Looking at a faster timeframe this market looks really uncertain



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I notice the blue trend lines as support under price, so a short trade will be difficult until we can drop below 1380. 

I can also see the divergence indicator giving us short signals at the highs of this recent move so the short trade is certainly the higher percentage opportunity.

Seeing this information further confirms our entry short below 1380 and taking final profit at the lows of this price channel.

Im looking forward to another great day with you in the live trade room, keep the questions coming, and dont forget to THANK a Veteran tomorrow 🙂  See you at 745am EST