After my little rendezvous with gold the next trade position was oil... As it struggled to move passed $72 for a while it was bound to break.
As the dollar weakens, you will have oil and gold gain value due to their value being derived in dollar terms. Weak dollar translates into strong commodities!
So, looking for something else to stick our teeth into while gold consolidates its new level of $1050 support, I traded oil from $72 to $80 over the last week or so. Very tidy little trading profit!
Trading stock markets and trading commodities is simple if you can follow the market cycle and waves. If you understand the relationship between dollar currency, commodity prices and stock market sectors then you can make good profit out of trading.
Right now, it's time to take a breather. Wait for the week to finish off... But I won't be far away in case something triggers a trade position.
All the best trading!
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Thursday, October 22, 2009
Thursday, October 8, 2009
It's my Gold Rush!
I've been bullish on gold for over a month now! What a rush!
Ever since the gold price pushed to test the support level at around $915 little over 6 week's ago I was bullish. The upside target on the gold chart is $1250!
Now from the small pull back from $1024 level to $990 again the gold price has shot up to a record of $1050 since Monday. The gold index in South Africa has skyrocketed almost 10%!
What's the reason? Some of the reason is due to the dollar weakness in the global economy as inflation takes it's toll. But also there has been a debate about the price of oil being derived from a basket of commodities rather than the dollar alone.
Guess which commodity is being considered as part of the basket of assets to price oil in future?
You got it! It's GOLD!
The Australian FED bank also increased interest rates as the first bank to start doing so as the global economy shows signs of ticking up. The combination of all these things has pushed the gold price to break records!
The medium term outlook on gold is to target $1250. We will have various waves of upswing followed by profit taking before we get there.
Be prepared to ride the waves and walk away with reasonable trading profits! Don't be greedy!
I've moved my stop loss levels to entry now. Looking to close half of my positions on the stock market in the resources sectors.
For our weekly Market Outlook newsletter visit our website link below:
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Ever since the gold price pushed to test the support level at around $915 little over 6 week's ago I was bullish. The upside target on the gold chart is $1250!
Now from the small pull back from $1024 level to $990 again the gold price has shot up to a record of $1050 since Monday. The gold index in South Africa has skyrocketed almost 10%!
What's the reason? Some of the reason is due to the dollar weakness in the global economy as inflation takes it's toll. But also there has been a debate about the price of oil being derived from a basket of commodities rather than the dollar alone.
Guess which commodity is being considered as part of the basket of assets to price oil in future?
You got it! It's GOLD!
The Australian FED bank also increased interest rates as the first bank to start doing so as the global economy shows signs of ticking up. The combination of all these things has pushed the gold price to break records!
The medium term outlook on gold is to target $1250. We will have various waves of upswing followed by profit taking before we get there.
Be prepared to ride the waves and walk away with reasonable trading profits! Don't be greedy!
I've moved my stop loss levels to entry now. Looking to close half of my positions on the stock market in the resources sectors.
For our weekly Market Outlook newsletter visit our website link below:
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Subscribe to:
Posts (Atom)
Posts
