Going Long Gold on Breakout

Gold Futures made a new 12-month low back on 12/31/13 at $1181.40 and proceeded to form a 1-2-3 bottom over the next several days (see Daily Gold chart below).  This past Friday (1/10/14) Gold broke above the #2 point of 1247.7.  We bought an April 2014 Gold Call option at a strike price of 1265 for $2,930.00 (3 strike prices out of the money).   This option expires on March 21.

On the Daily Chart, the 50% Retracement is $1271.85, but on the Weekly Chart, the 50% Retracement is $1488.40.

Daily Gold - Feb 2014Weekly Gold

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