On April 3, I wrote about an exciting short-term opportunity in gold.
I spotted a bullish triangle that was getting ready to break out, which would take gold prices higher.
You can check out this setup below…
My upside target was $2,050. And just two days later, on April 5, gold went on to hit a high of $2,049.
Sometimes, my price targets are accurate to the dollar. This trade got very close, missing the target by just $1.
But trading is rarely picture-perfect. Being able to improvise and adapt in the moment is one trait that separates winning traders from the rest.
As a result, it’s now best to get out of the trade and wait patiently for the next buying opportunity.
Now here’s what I’m expecting to happen next… Take a look at gold’s updated price chart after the triangle broke out…
As I mentioned earlier, gold got extremely close to my upside target of $2,050.
The reason I had identified this price level as my target is because it coincides with a major top in gold dating back to March 2022.
Back in March 2022, gold hit a high of $2,078 before pulling back all the way down to $1,686. This meant that there would still be stiff resistance anywhere near that $2,078 price point.
And as we can see on the updated price chart, this is indeed the case. Gold took a fierce run at that prior resistance level but ran out of steam before it could take it out.
Just like a sprinter that must catch his breath, gold simply ran too far too quickly. That’s why we’re seeing the pullback right now.
Look Out for a Bigger Bull Market Ahead
But it’s important not to panic. My analysis tells me gold is still very much in the early stages of a bigger bull market.
That’s why my next step is to wait for gold to pullback to an attractive level where I can look for yet another buying opportunity.
This is where the 200-Period Moving Average (MA) comes into play. The 200 MA is a great way to identify strong technical support.
Right now, the 200 MA on the four-hour price chart comes in around $1,916. That would mean a little more than a 50% pullback in gold from the February 28 lows.
That’s a great area to start looking for another bullish setup. But for now, we must be patient with the gold market for a while longer.
Once gold reaches an attractive level, I’ll let you know if I spot another great trading opportunity.
Happy trading,
Imre Gams
Analyst, Market Minute
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Source: Jeff Clark Trader