Gold Futures

Category Archives: Gold Futures


How to Trade “Consolidation Patterns” + Futures Trading Levels 6.28.2022

June 27th, 2022 Filed under Future Trading News, Gold Futures, Metal Futures | Comment (0)

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How to Trade “Consolidation Patterns”

By John Thorpe, Senior Broker
There are a number of consolidation patterns: sideways ranges(rectangles), upward or downward sloping patterns or “flags” , triangular or Pennants. Today I have found on the Continuous Daily Comex Gold chart to illustrate, several recent rectangle consolidation patterns. One recent rectangular consolidation with a false breakout followed by a confirmed breakout and one that is currently forming. A Consolidation rectangle pattern has clearly defined ranges defined by highs and lows that can be connected drawing horizontal lines.
Continuous Daily Comex Gold chart
The above chart reflects just this. There are three points of interest outside the two rectangles, on the first one from March to April there is an upside break out but on light volume, Rule #1. Breakouts must occur on a closing basis on heavier than normal volume. You should not trade the breakout move on lighter volume. #2 wait for a retest of the previous resistance or support line. You will notice the high volume day after the breakout was on a failure of the retest. Good for you! a win, you didn’t fall for the breakout.
And #3, On April 29 had you worked a sell GTC limit order at or around the retest level of 1917,1918,1919.00 (which you could have placed as early as April 25th) you would be short the breakout . Soon after, a new consolidation zone is created and we are still currently inside. You can see two bars outside the consolidation but NOT on a closing basis.
In Summary, look for one of these patterns which are some of the most common, Look for a high volume breakout and don’t get in until the market retests the previous support or resistance area, and try to manage your stop loss orders within the old consolidation areas!!
Important: Trading commodity futures and options involves a substantial risk of loss.
The recommendations contained in this letter are of opinion only and do not guarantee any profits.
Past performances are not necessarily indicative of future result

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

06-28-2022

 

Futures Support & Resistance Levels 6.28.2022

 

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Economic Reports, Source: 

Forexfactory.com

 

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.


Inflation & the Markets + Futures Support and Resistance Levels 5.10.2022

May 9th, 2022 Filed under Future Trading News, Gold Futures | Comment (0)

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Inflation & the Commodity Markets

by John Thorpe, Senior Broker
There are a number of characterizations of inflation in the business press and social media some related to the speed of inflation as in Creeping Inflation or Moderate inflation even hyper inflation and may be used as adequate adjectives, but these don’t describe what the causes of inflation are of which there can be many.
This Wednesday , CPI or the Consumer Price Index will be published at 8:30 am EDT an often quoted measure of Inflation but not the one the FRB uses to guide interest rate decisions, they choose to focus on the PCE or the Personal Consumption Expenditures Price Index. The Market will focus on both. If you recall last month the CPI showed the largest monthly advance in 42 years. The consensus from Econoday.com is for an 8.1 % Rate, with a much smaller incremental increase than the previous tally. Heading into that number Gold prices had been rallying for 3 successive days and experienced a 20 dollar rally continuing the move and added an additional 2 days of inertia before the peak on April 18th and subsequent sell-off , nearly a month later the Gold market seemingly is telling us that the consensus for CPI will be correct as reflected in weaker gold prices. If you watch the gold market watch the reaction to CPI on Wednesday morning. If CPI is Higher than the consensus and gold rally’s and holds those gains into the 1:30 pm EDT zone, then the recent lows in my view are in.
As for the causes of inflation, today we are in what economists call Demand – Pull inflation. This is when the aggregate demand for goods and services in an economy exceeds the aggregate supply. This concept is associated with full employment when adjusting the supply of goods and services is either not possible, or difficult to achieve in a timely manner. Always have a plan to manage the risk in your trades before you employ your strategy, Plan your trade and Trade your plan
 If you have any questions please contact your broker!
Click on chart below for LARGER IMAGE – Gold Daily Chart
Gold Futures Daily Chart

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

05-10-2022

Futures Support and Resistance Levels 5.10.2022

 

 

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Economic Reports, Source: 

Forexfactory.com

ForexFactory.com 5.10.2022

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.


Gold Watch (Outlook), FOMC & Support and Resistance Levels 5.04.2022

May 3rd, 2022 Filed under Future Trading News, Gold Futures | Comment (0)

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Gold Watch Part 3

By John Thorpe, Senior Broker
Two weeks ago I highlighted the high of the move as a turning point for the yellow metal in the short term when the market achieved a $2003.00 per ounce daily high .
However, on that day the market closed at $1982.00 a troy ounce, a $20.00 plus dollar retracement off the high , I also noted that the 1920.00 area would be a support zone and that those that intended to go long should use a retracement back to that price level as an area to go long, to risk less by employing a risk strategy underneath 1920.0 per ounce.
Kudos for those that did as not only was this important area breached to the downside on April 25th but April 29th, as the market tested this number again and could not hold this level.1920.00 proved to be a very strong area for this market as the intraday trade hit this price ceiling, failed and closed near the lows at 1896.90.
Had we closed near 1900 today we would again, be off to test the 1920.00 area this week. That was not to be. This market is falling back into the “comfort zone” of the range from the last year of 1900.00 to 1740.00. With the Fed announcing an expected 2 basis point hike this week on Wednesday at 2:00 EDT, I have a theory:
I expect this current price discounting in the gold to temporarily rally hard moments after the Fed release only to sell off at the strength in the US Dollar as a result. It will be interesting to see if my theory works or not.
This should create an opportunity ( AND RISK!!) to sell the gold for a short term , hi volume break down into the low 1800’s. with your risk management technique employed above the 1900.00 area. Inflation is here and from an investment standpoint, because equities and bonds are both weak, (not since the early 80’s have we seen this combination) cash (by way of the US Dollar) is king in the short run.
I rarely recommend using more than 30% of your margin on any single idea and recommend a risk management strategy using, either stops, Options, spreads but prefer not to use the “free hand to click to get out” approach.
Use your disciplines and you will survive to trade another day.
The following are my PERSONAL suggestions on trading during FOMC days:
 1.)  Reduce trading size
2.) Be extra picky = no trade is better than a bad trade
 3.)  Choose entry points wisely.   Look at longer time frame support and resistance for entry. Example, trader x looking to go long the mini–SP at 4325.00 with a stop at 4319.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 4319.75 and place a stop $250.00 to $500.00 below in this hypothetical example (consider current volatility along with support and resistance levels).
Expect the higher volatility during, right after and during  the news conference 30 minutes after the announcement. Expect to see some “vacuum” (low volume, big zigzags) right before the number.
·    Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
 Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
Gold Daily Chart for your Review. Click for LARGER IMAGE
Gold Futures Daily Chart

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

05-04-2022

 

Futures Support and Resistance Levels 5.04.2022

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.


Gold Futures Outlook Part 2 & Support and Resistance Levels 4.19.2022

April 18th, 2022 Filed under Future Trading News, Gold Futures, Metal Futures | Comment (0)

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GOLD WATCH Part 2

By John Thorpe, Senior Broker
Last Wednesday on this Blog I highlighted the Gold market as a potential candidate to rally and has continued to.
From a technical perspective Gold Futures does look ready to test recent highs. there was clearly excitement today during the Hong Kong session and then again, follow through buying during the London session with todays high peaking at 9 a.m. NY time @2003.00 per troy ounce before retreating back during the London session to close up on the day but near the lower end of the days trading range.
IN MY OPINION, Today’s Globex session appears to tell the tale of a short term reversal as “Gravestone Doji ” inks the chart today signifying the potential to move this market back into the 1940.00 area the next few days, still staying above critical support of 1920.00 .
A correction could put us in a better position to hold longs closer to support potentially risking less of our capital.. Keep an eye on this market as it is truly ready for a large move one way or the other.
*Trading commodity futures and options involves substantial risk of loss.
The recommendations contained in this blog are of opinion only and do not guarantee any profits.
These are risky markets and only risk capital should be used. Past performance is not indicative of future results*
Gold Futures Daily Chart
Contact us for a demo and/ or more information here!

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

04-19-2022

Support and Resistance Levels 4.18.2022

 

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

ForexFactory.com

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.


Gold Futures Outlook & Support and Resistance Levels 4.13.2022

April 12th, 2022 Filed under Future Trading News, Gold Futures | Comment (0)

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IS GOLD’S Lustrous sheen returning for investors?

By John Thorpe, Senior Broker
Stocks lower, Bonds lower, Inflation higher: Gold, after months and years of expecting the price of the metal to gain upward price momentum, the value for investors had been tarnished by the positive returns of high stock prices, Crypto dreams, property values, Gems and artwork whose own luster may now have reached a short term point of no return. The Easy to Easiest money policies over the past decade have caught up and now it’s time to pay of our economic sins. Perhaps these times, the 2022’s and beyond are the right times for investing in the precious metals. Please take a look at the Chart where you will see the importance of the 1920.00 area. It was previously the High of multi year consolidations. 5-31-2021 nearly a year removed , the lows of the past two weeks are skimming along the 50 day SMA. If you are a Steve Nison Fan you may also notice the long legged Doji on March 29th just 2 weeks ago. any long position should be protected under the 1920.00 area as part of your risk management strategy., I will be following this market throughout the summer, please check back for updates and always have an exit strategy that you can employ!
Gold Futures Daily Chart
Sierra Charts, Teton Order Routing
Contact us for a demo and/ or more information here!

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

04-13-2022

Futures Support and Resistance Levels 4.13.2022

 

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

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