Good morning team,
As you all know we have been bullish on metals for the past few weeks and a breakout on gold and silver looks a high possibility. As we want exposure in the metals market over the longer term we have decided to enter a position on a GOLD ETF. You will need to purchase this asset through your bank or an app like STAKE. This will give you access to the US market. There is a GDX here in Australia which is also an option, however, I prefer the technical structure in the US market. GDX gives investors exposure to a diversified portfolio of companies involved in the gold mining industry.
GOLD – Weekly Charts
Gold looks set for a breakout to the upside, and we will be looking to trade the metal in our FX trading accounts. We are just waiting for a pullback to enter the market.
NYSEARCA: GDX – Weekly Chart
The GDX price action has set up a nice rounded bottom, which is also known as a cup & handle structure. There appears to be some nice upside potential here.
NYSEARCA: GDX – Daily Chart
The GDX has been in a +1 year-long consolidation phase and the price action has set up an inverted head and shoulders structure which tends to occur at the bottom of a trend. We can see a clear 5 wave impulsive move on the left-hand side followed by a long correction phase in three legs, ABC. These are bullish technical formations.
Trade Setup: BUY 10 units at 33.32.
If you are purchasing the US ETF you will need to wait until later this evening to enter the position, or you can set a BUY stop/BUY limit up to activate at a certain price.