Pending Breakout For February Gold Futures
Shain Vernier • 1 min read
Throughout today’s session, trading February GOLD futures has been like watching paint dry. It appears that the upcoming U.K. Parliamentary vote on May’s Brexit deal has many traders taking a wait-and-see approach to bullion.
At press time (1:15 PM EST), the U.S. indices are exhibiting modest activity and the USD is hanging in there against the majors. For now, it is a quiet Monday afternoon on Wall Street.
February Gold Futures
The daily chart for February gold futures gives us a clear picture of just how important the 50% Retracement of 2018’s Range is to price action. 1292.9 has dominated the last eight sessions, driving two-way participation and setting up to be either a launch point to the bull or bear.
Until bullion finally breaks out, there are two price points I will be watching very closely:
- Breakout Point(1): Last Week’s High, 1298.0
- Breakout Point(2): Last Week’s Low, 1280.1
Bottom Line: Each of these breakout points will bring high degrees of participation and enhanced order flow to February gold futures. Until elected, I will have buy orders in queue at 1298.1 and sell orders from 1280.0. Using a standard 1:1 risk vs reward management plan, this scalp produces a fast 10 ticks on robust momentum.
Technically, I maintain a bullish bias toward gold as price remains well above the 38% Current Wave Retracement (1276.0). In the event things heat up above 1298.0, significant extension north of the Swing High (1300.4) will become probable.