My short trade in gold pays off

John C Burford describes a beautiful two-day trade in gold, and looks at where the market might be heading next.

On Monday, I gave an excellent set-up for a short trade in gold. The market had made a precise Fibonacci retrace of a previous down-wave to the $1,760 level.

For that and various other reasons, it looked very likely to me that the market would decline off that $1,760 level and present me with a low-risk trade.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.