Looking for a short term profit on a retracement to the trendline. Today it failed to break and close above the Aug 2013 Highs and there are signs of a retracement starting to play out since it:
1) Failed to break the resistance
2) Reversed from the daily highs forming a shooting start
Looking to hold the trade for a few days. If tomorrow (June 26th) continues going lower I'll trail a stop if not I will close the position immediately at the beginning of the day.
PS: Gold still looks bullish and there is still high momentum. Look for bullish entries after a retracement if you are planning on holding your position for longer time frames like a week. I am actually in a small position in HBD which is a 2x Canadian ETF that has a correlation to GC
1) Failed to break the resistance
2) Reversed from the daily highs forming a shooting start
Looking to hold the trade for a few days. If tomorrow (June 26th) continues going lower I'll trail a stop if not I will close the position immediately at the beginning of the day.
PS: Gold still looks bullish and there is still high momentum. Look for bullish entries after a retracement if you are planning on holding your position for longer time frames like a week. I am actually in a small position in HBD which is a 2x Canadian ETF that has a correlation to GC
Trade closed: target reached:
Although this can keep going down I was only planning on a quick profit, made 2.45% on the trade in HBD entry at 11.88 exit at 12.12. The main reason not to hold this trade longer is that:
Smaller movements tend to resolve in the direction of larger movements. Additionally, new momentum highs with recent price highs are indicative of higher highs yet to come and odds favor a continuation of a movement upwards not a fully fledge reversal.
Smaller movements tend to resolve in the direction of larger movements. Additionally, new momentum highs with recent price highs are indicative of higher highs yet to come and odds favor a continuation of a movement upwards not a fully fledge reversal.