For those of you who are into a trading technique called “trend following” (or “momentum trading”), you will want to know that gold prices had broken out of its trading range last Friday at around US$1256. For those who are unacquainted to trading, trend following traders are always on the lookout for prices that “break out” of a trading range in search for a trend to ride on.
The tricky issue for Australian traders is that though gold prices had hit a record high in US dollar terms, it is still below the record high in Australian dollar terms (in the first quarter of 2009).
Our? friends from Market Club has more detailed explanation on the charts here.
Meanwhile, for those who are into stock-picking, it is time to compile a list of stocks that you want to buy. We will talk more about it in the coming articles.
