My first gold prediction for 2017
For years we've been reading some ridiculous gold predictions from experts. And when I say experts, I'm talking about the TOP banking analysts around the world.
“Gold is going to $6,000 in the next three years” “You can expect the gold price to go up 15,000% from here”
At that time gold was trading at $1,719, when these predictions were made. And guess what? Today gold is trading at $1,199 which is 30% down from where it was four years ago.
And you didn't need any fundamental data, demand and supply analysis or company analysis to tell you the gold price will drop from there. All you needed was one chart to show you how the gold price was coming down.
Today, I'm going to show you one of these charts, that's showing downside for gold. In fact, I expect gold to drop just 8.1% from here.
Might not sound like much, but I'm going to show you how you can make a 31.54% gain with this move.
Gold has broken down and is ready for you to profit
When you look at the chart. You can see gold has been going up on a strong floor line line (pink line) from $1,128 up to $1,248.
But as of last week, we saw gold break below the support level ($1,236), for the first time this year. This instantly turned gold’s uptrend into a downtrend.
You can think of a support level like a thin layer of ice. The more you stamp on it, the higher the chance it will break to the downside. Learn more about the support line here…
And that’s exactly what it’s done.
Now that it’s broken below this level (yellow circle), the next target gold is likely to head to is the previous low (Green line).
In this case, the low is at $1,128, which was the start of gold’s uptrend in December 2016.
From where gold is currently ($1,228) and where the next target is ($1,128), means gold should drop 8.1% in price.
And here’s how you can turn an 8.1% move into a 31.54% gain with the power of trading gold CFDs
If you want to get in on this action there are two ways you can do this.
One - You can sign up with a broker. This is where you’ll gain access to commodity financial instruments where you can trade gold CFDs.
You’ll put in your trade entry, stop loss, take profit level to short gold.
Let’s use an example. Let’s say your entry price is at $1,228, your minimum deposit is R317 and your take profit level is at $1,128.
Here’s how to calculate the gain you’ll make.
Gold CFD trade gain=(Entry – Exit) ÷ minimum margin X 100
=($1,228 - $1,128) ÷ R317 X 100
Note: The minimum margin is the amount of money you’ll need to put into your trade to own gold CFDs. You can get this number from any broker.
If you don’t know where to put your stop loss and how much to risk, then it’s better to join Red Hot Storm Trader.
This is where I’ll do all the work for you. I’ll send you an email and sms with all the information as to what to get in, set your levels and where to get out.
Note: 5 of 1 vote