Written by: Trader 2/11/2009 6:04 PM
Gold had an upside breakout from a sideways consolidation on the daily charts. This means we have to go with the flow and right now that flow is up. So, buy pullbacks on the intraday charts - it's as simple as that. Keep a short leash and take small profits. If you're ambitious, you can buy the first pullback, set a stop and look to see if the breakout momentum can take price up to the 1000. For everyone else, just scalp to the long side. The white horizontal trend line in the chart below shows the sideways line that formed as the oscillator pulled back from the last run up. Price went sideways as the oscillator pulled back to zero which is a bullish sign.
AMZN had a breakaway gap on earnings a couple of weeks ago. We got the first real pullback in price on it Tuesday. If price pulls back more today, it's worth trying a long side scalp. You can see the oscillator pulling back without price giving up any real ground. If this behavior continues over the next couple of days that would be bullish. So, add some on a pullback today; Add more on further pullback over the next couple of days. But, keep watching how that price acts as the oscillator continues to correct back towards zero - you want to see it not give up too much ground. If it spends too much time below the 60.00 level, that would not be bullish any longer.
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