May 22nd – Market Analysis & Trading Opportunities
1 – Gold markets fell a little bit during the session on Thursday, but we do believe that the buyers are stepping back into this marketplace and looking to go long. With that, we are call buyers of this market but we recognize that it might be a bit choppy. We think there is a significant amount of support at the $1200 level, just as there is a significant amount of resistance at the $1225 level.
2 – The FTSE had a fairly quiet session during the day on Thursday, but did test the 7000 level in order to form a bit of a hammer. Because of this, the hammer shows that we should be buying calls in this market and that we will eventually get to the 7100 level. We think it might be choppy getting up there, but we do like the idea of being bullish in the FTSE at the moment.
3 – The GBP/USD pair had a good showing on Thursday, breaking well above the 1.56 level again. We believe that short-term pullbacks will offer call buying opportunities as we head back to the 1.58 level. Once we get above there, we feel that the longer-term uptrend continues, and that we will break out to much, much higher levels. We believe that the 1.55 level right now is the “floor” in this market, and as a result we have no interest in buying puts as the British pound continues to impress around the world.
Disclosure: None.