On April 8, 2013, we received a 5 Ichimoku Time Frame Buy email alert on GOLD, Randgold Resources ADS. The email alert is shown below:
This stock is related to Gold Futures. Gold Futures are in a big consolidation pattern. As a result, we are going to trade using the 4h chart. The entry was 82.46, initial risk of 84.91, preserve mode 1 of 78.04 and preserve mode 2 of 74.64. The max. risk would be 2.45 and the min. reward would be 4.42 to preserve mode 1 and 7.82 to preserve mode 2. The min. reward/risk would be 1.8:1 to preserve 1 and 3:1 to preserve 2. The reward/risk to preserve 1 doesn’t look good so we are going to use options to reduce our risk more and increase our reward/risk to preserve mode 1 since volatility is average. Here is the trade setup
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