Although the 0.382 Fib has acted nicely as support for GOLD/USD and global economic conditions are looking more uncertain, I'm going to be as patient as Jerome Powell.
The daily and weekly RSI is overbought and I'm awaiting the retest of the 5-Year resistance + cup and handle pattern that GOLD has just busted out of.
Weekly view:
Furthermore, Gold did top out on a daily TD 9 and I can see it getting within the proximity of the TDST line.
However, with Powell testifying tomorrow and whatever the interest rate decision is, the direction is really unpredictable. If you're buying GOLD/USD to hold, I think you might be safe here if you want to hedge your bets.
Best of Luck and let me know what you all think about Gold, the economy, stock market, trade, etc.
The daily and weekly RSI is overbought and I'm awaiting the retest of the 5-Year resistance + cup and handle pattern that GOLD has just busted out of.
Weekly view:
Furthermore, Gold did top out on a daily TD 9 and I can see it getting within the proximity of the TDST line.
However, with Powell testifying tomorrow and whatever the interest rate decision is, the direction is really unpredictable. If you're buying GOLD/USD to hold, I think you might be safe here if you want to hedge your bets.
Best of Luck and let me know what you all think about Gold, the economy, stock market, trade, etc.
Comment:
annnnnnnnnd here comes dovish Powell. Boom.
Honestly, I'm not mad that I missed this trade. If it comes down, awesome. If not oh well. All who got into this trade, rock on and good call.
Honestly, I'm not mad that I missed this trade. If it comes down, awesome. If not oh well. All who got into this trade, rock on and good call.
If you plan on shorting a put spread, keep an eye on the Gold Volatility Index (GSV) so you can get a solid premium on the IV and benefit from the IV contraction: