Wednesday, October 29, 2008

Gold/Commodities Rally on Dollar Weakness

Last night we discussed the potential for gold and commodity longs on dollar weakness. The first chart of ABX is a typical gapper dummy entry. We close all our positions ahead of the FED policy statement.

The second entry is the post FED trade on ABX. I try to make sense of the action and look for a low risk entry point. Here I saw an inverted H&S pattern with a stop just below the shoulder.

CNQ gapped up and ripped out on the open so I took an entry above R2 (small C&H pattern on 1 min. timeframe). Partial after a 2 pt. move into $46.00 and exit after it stalled at $48.00. Again, look for a solid base on the post FED trade.

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