Potential Gold Trade For Friday’s Session
Shain Vernier • 1 min read
It is getting a bit redundant, but the theme for me this week facing December gold futures has been to fill in the opening GAP. As we roll into Friday’s trading session there may be an opportunity to rack a few ticks and capitalize upon this idea.
Heading into the late U.S. session, gold futures are poised to close in positive territory. From my perspective, this is a welcomed development.
December Gold Futures, Daily Chart
A few observations:
Our support zone from yesterday’s brief has held. The area between 1325.3 and 1315.5 is a potential intermediate-term turning point for this market.
This week’s GAP is still without a formidable test, from 1341.5-1347.1.
Today’s close will be pivotal. If we close inside of the current intraday range of 1319.5 to 1332.0, a breakout may be cooking.
Bottom Line: The defined support area called the bottom of today’s market fairly effectively. I take this as a bullish sign and will be looking for buy entries during tomorrow’s electronic session.
If today’s closing range stays close to what it is now, I will be playing a breakout above today’s high for tomorrow’s session. Here is how:
Place my buy order one tick above today’s session high
Looking for 15-25 ticks with a 1:1 ratio.
30 minute or 1-hour compression pattern preferable before entry
Depending upon the exact timing, this trade takes place in a what is likely to be a very hot zone. Obtaining the service of a superior broker is a good idea to ensure that your orders are filled efficiently.
As always, trade smart and for tomorrow!