How to Trade Fibonacci Confluence Intraday

01/27/2010 12:01 am EST

Focus: STRATEGIES

Corey Rosenbloom

Founder and President, Afraid to Trade

I always enjoy highlighting quick tips whenever possible on intraday trading tactics, and Monday’s action gave me a great chance to share a quick example of a near-perfect intraday Fibonacci confluence.

Let’s see it and learn how to use this trick in the future.

chart
Click to Enlarge

Since the start of 2007, gold is up 70%. The major gold stocks are up about 30%. Junior gold stocks, however, have seemingly missed out on everything. As a group, they’re down 40%.

As gold marches higher over the long run, this will not last. The juniors are going to catch up in a big way, and as we watch the new trend in gold stocks, a large group of junior gold stocks has already started.

For this gold bull market, as we look for undervalued anomalies within bull markets, we’ll continue to recommend the deeply undervalued juniors because from a valuation and risk/reward perspective, they’re the best.

If this new trend in the juniors is a sign of things to come, it’s going to be a highly profitable ride in the very near term, regardless of which way gold prices go.

By Corey Rosenbloom of AfraidToTrade.com

Related Articles on STRATEGIES