Strong buying opportunity is on the horizon! For anyone who follows me, you know I like to setup my trades ahead of time and then wait for the entry signal. So here it is: the ICL will occur in the next few days and a new long entry will challenge recent highs. Gold has been trapped in a declining channel for the past few weeks and it is about to end. We are now approaching a noisy support zone with a lot of strong resistance points from which to bounce.
$1,314 - * support level that may hold
$1,306 - ** support level that is likely to hold
$1,294 - *** support level that is highly unlikely to be broken
This is the final C of an ABC correction wave and the USD is getting stronger (both putting short term downward pressure on gold prices). The current bear trend will continue in the short term but we are setting up a strong foundation from which to challenge to the prior $1,370 high. Collision of technical indicators also set a strong support level between $1,306 and $1,319
RSI - approaching oversold - buying opportunity ahead
100 MA - $1,318
200 MA - $1,301
Cycles - this cycle is very stretched - ranges are starting to expand
Downward channel - approaching the lower limits of the channel
Entry: any price action bullish signal between $1,320 and $1,306
Stop: $1,305
Target 1: $1,350
Target 2: $1,370+
$1,314 - * support level that may hold
$1,306 - ** support level that is likely to hold
$1,294 - *** support level that is highly unlikely to be broken
This is the final C of an ABC correction wave and the USD is getting stronger (both putting short term downward pressure on gold prices). The current bear trend will continue in the short term but we are setting up a strong foundation from which to challenge to the prior $1,370 high. Collision of technical indicators also set a strong support level between $1,306 and $1,319
RSI - approaching oversold - buying opportunity ahead
100 MA - $1,318
200 MA - $1,301
Cycles - this cycle is very stretched - ranges are starting to expand
Downward channel - approaching the lower limits of the channel
Entry: any price action bullish signal between $1,320 and $1,306
Stop: $1,305
Target 1: $1,350
Target 2: $1,370+
Comment:
Good overnight action - small correction before the final plunge to complete the channel and setup the next leg up. I’m expecting a final steep decline, overshooting $1,320 and testing $1,306 with an aggressive reversal back up forming a bullish pinbar on the 4 hour. Aggressive traders can try to enter at $1,310 or lower during that reversal leg.
Comment:
The trade is getting clearer:
1) violent price reversal should coincide with the FOMC meeting on May 1-2
2) this will be the daily pin bar I'm watching for as a price action entrey
3) a good trade entry point around $1,315.
Choppy downwards price movement until then as the US stock markets react poorly to good earning reports while gold just slides sideways instead of rising.
1) violent price reversal should coincide with the FOMC meeting on May 1-2
2) this will be the daily pin bar I'm watching for as a price action entrey
3) a good trade entry point around $1,315.
Choppy downwards price movement until then as the US stock markets react poorly to good earning reports while gold just slides sideways instead of rising.
Comment:
Right on target...I would get out of your shorts now. There is more drop to come but it might to choppy, short lived and shallow. Now is the time to start watching the bottom price action and looking fir a stable long entry point. Lots of upside on this one.
Comment:
Bouncing up from the daily 100 MA but it won't hold. Not the right time for a long entry yet, still watching for entry signal between $1,306-$1,315 around FOMC meeting.
Comment:
The lows are decelerating and there is good bounce off the mild support at $1,320. Gold is bottoming but there may be one more big fall then quick reversal to give the desired bullish pin bar. I’ll move this to a new idea “buy” on the weekend with long entry early next week.
Trade closed: target reached:
Risk of ongoing short not offset by reward. Closing all shorts. Posting new idea from this for long position around FOMC.
