Welcome to the latest edition of T3’s Trades of the Week newsletter!
Let’s jump right in with this week’s trades and analysis:
1) Jeff Cooper on the US Dollar and Gold
Unless the dollar can recapture its 50 day in short order, it is vulnerable to a break to 98 and an Eiffel Tower move — a complete retracement of the-post election rally.
An extension lower in the dollar should perpetuate a breakout in gold and the miners over the last swing high.
2) Scott Redler on IBB (IBB)
IBB needs to prove it can hold above $293.57. Like a lot of traders, I got stopped out last Thursday. It’s now below the 8/21 day. If this breaks and closes below Friday’s $293.57 low, it could fade back into the base towards the 50 day near $286.
Click here to get a FREE look at Scott Redler’s Trading Screens.
3) Off the Charts on XLNX
It was a pretty quiet day for XLNX Friday. For the second session in a row, an early green move was sold off but similar to Thursday, buyers stepped in to defend 60 and once the morning action slowed down it settled into a long sideways range into the end of the day, eventually finishing above 60. Friday’s close above 60 marked the 3rd day in a row that XLNX finished above the important resistance level.
Although it couldn’t hold onto Thursday’s gains, establishing support above previous resistance should bode well this week. A move above 60.50 that holds would be a solid first step, and clearing 61 should ultimately get momentum rolling.
Click here to learn more about Off the Charts.