Hi there,
I believe the gold rally is getting low momentum and its price may drop like stone in water. But as I am a short-term trader I see there in good opportunity to ride last wave heading to a new top. Perhaps I will consider some contracts @ 1345 - 1346 for target @ 1354 and my SL is near 1342. Lets do some calculation:
Est. profit = 1354- ((1345+1346)/2)= 9 points * 10 (ticks) = 90 * 10 (tick worth) = 900 $/contract
Est. loss = ((1345 + 1346)/2) - 1342 = 3 points * 10 (ticks) = 30 * 10 (tick worth) = 300 $/contract
Risk/reward= 1:3
By the way gold mine companies also show same case such as ABX
I believe the gold rally is getting low momentum and its price may drop like stone in water. But as I am a short-term trader I see there in good opportunity to ride last wave heading to a new top. Perhaps I will consider some contracts @ 1345 - 1346 for target @ 1354 and my SL is near 1342. Lets do some calculation:
Est. profit = 1354- ((1345+1346)/2)= 9 points * 10 (ticks) = 90 * 10 (tick worth) = 900 $/contract
Est. loss = ((1345 + 1346)/2) - 1342 = 3 points * 10 (ticks) = 30 * 10 (tick worth) = 300 $/contract
Risk/reward= 1:3
By the way gold mine companies also show same case such as ABX