please note: This is a personal journal only, but NOT a trading suggestion.
Current price: 1786
===================Analysis=================
Last week Gold broke the ascending trendline and finish a nice impulsive move to 1772 lowest. Currently it rebounces to 1786 area to initiate the correction.
With the fact of strong bearish movement, I think price have higher chance to go lower rather than spike up. It would at least test 1772 one more time before the future direction is made.
If I assume this impulsive wave is wave-3, then another lower low would be expected, and this correction should not exceed 1790.
So even 1795 is the 61.8% of Fib line, I wouldn't see the price bounce that further. Instead, I will rather enter short at 1786 - 1790 area with a reversal confirmation and see how market is going on.
Key levels for the day:
1795-- pivot
1787 -- key resistence
1772 -- key support
So here are a few situations:
=================Possible Situation==========
No.1 Gold ranges between 1790-1772
No.2 Gold breaks below 1772 and quickly finish the wave-5 at 1760
No.3 Gold rise above 1795 and resume bullish.
P.S:
I'm NOT trying to predict the market, but just to find out the most cost-efficient plan to trade.
=================My Trading Plan===============
Buy limit: N/A
Sell limit: 1786 - 1790. SL 1794, tp 1772
Sell stop: 1770, tp 1760
Current price: 1786
===================Analysis=================
Last week Gold broke the ascending trendline and finish a nice impulsive move to 1772 lowest. Currently it rebounces to 1786 area to initiate the correction.
With the fact of strong bearish movement, I think price have higher chance to go lower rather than spike up. It would at least test 1772 one more time before the future direction is made.
If I assume this impulsive wave is wave-3, then another lower low would be expected, and this correction should not exceed 1790.
So even 1795 is the 61.8% of Fib line, I wouldn't see the price bounce that further. Instead, I will rather enter short at 1786 - 1790 area with a reversal confirmation and see how market is going on.
Key levels for the day:
1795-- pivot
1787 -- key resistence
1772 -- key support
So here are a few situations:
=================Possible Situation==========
No.1 Gold ranges between 1790-1772
No.2 Gold breaks below 1772 and quickly finish the wave-5 at 1760
No.3 Gold rise above 1795 and resume bullish.
P.S:
I'm NOT trying to predict the market, but just to find out the most cost-efficient plan to trade.
=================My Trading Plan===============
Buy limit: N/A
Sell limit: 1786 - 1790. SL 1794, tp 1772
Sell stop: 1770, tp 1760
Trade active:
short entered at 1787 as planned
Trade active:
short re-enter at 1792 now as I see a reversal signal in H2
