Jan
28
Written by:
Trader
1/28/2009 7:03 PM
The 480 Min chart of Gold has a bullflag that is getting ripe. So, look for an opportunity to buy it on Thursday using a lower timeframe chart. Buy Divergences, Tests, Breakouts from sideways lines etc. are all valid setups that you can look for on a lower timeframe to put you in the direction of a LONG trade.
There were many upside breakouts on Thursday - in fact, an island formation was left on the daily charts for the ES/SPY. So, the most logical thing to do now is to buy pullbacks. Therefore, any retracement on Friday to the 20 period EMA on a 15 min, 30 min or 60 min charts are all buying opportunities. The chart below shows the island that was left on the SPY on the breakaway gap to the upside. If this gap holds, we should have further upside to maybe 95.00

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