Late-Session Scalping Setup In Gold
Shain Vernier • 1 min read
After an initial bullish breakout above Tuesday’s high, June gold futures have sold off dramatically. U.S. indices are posting a significant recovery from the negative open, furthering the exodus of traders from gold.
Today’s action is a great illustration of just how much of a difference a few hours can make in the markets. While there is still some time before the daily close, sentiment has shifted dramatically. The apparent bloodbath for equities and windfall for safe-havens has not panned out.
Let’s take a look at where gold may be headed in coming hours.
At press time, June gold futures have retraced into the heart of Tuesday’s trading range. After what appeared to be a trend day up, U.S. session bears have dominated the action.
Here are the key levels to watch for the remainder of the session:
- Support(1): Bollinger MP, 1336.2
- Support(2): Daily SMA, 1328.1
Bottom Line: The Bollinger MP is set up as late-day support. I will have buy orders in the queue from 1336.6. Volumes will be limited, so a tight 1:1 R/R scalping plan for 8 to 16 ticks is an affordable way to play a bullish bounce from support. This recommendation is valid until today’s market close.
Should the bullion market fall apart on the close, a position long from the Daily SMA will come into play by week’s end. Stay tuned for details on how to capitalize on the action.