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Gold – Price Action Explodes Higher on Large Buyer | Jun 19th
Gold – Large Buyer Prompts $50 Daily Gain
Early this morning NY time, someone came in and bought half a billion dollars worth of gold futures (notional volume) just above $1280. The precious metal jumped $5 in a matter of minutes, and continued to eat through the offers all day, with the impulsive price action moves landing just below the $1300 key level shortly after noon EST (chart below – source: zerohedge).
Clearly there were a lot of stops posted above the $1300 figure, because the precious metal jumped over $15 in almost 15 minutes, hitting an intra-day high of $1321. You can see this, along with the different levels marked where the offers were just taken out with ease.
Our Trade Idea: Maintain a bullish bias above 1300, looking to buy on pullbacks between 1315 and 1300. Aggressive traders can look to get long between 1315 and 1309. If no heavy selling emerges in early London or NY, then we could be seeing the beginning of a much larger move, with 1390 being the next major upside target.
Anything above this would likely trip major stops & technical models, putting 1433 and 1530 on deck. The higher low set back 3 weeks ago at 1242 suggests 1387 and 1433 are more likely to be hit before 1245. Clearing 1433 on a weekly basis, makes 1533 a very likely upside target, and most probably the start of a new bull run.
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