Recently we have been discussing various spread trading strategies for stocks and commodities and the 2 markets that we have been focusing on are gold and the S&P 500.
Let’s begin today with gold. In our last post on gold we wrote that we were looking for a move back up above short term resistance at $1215. We had written that there had been a bull harami pattern on the weekly charts and that this pointed to higher prices in the short term and a test of $1215 resistance early in the week. We got that test yesterday and the market moved up to $1218.8 (August contract) at one stage in the day but was unable to close above $1215.
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