Potential Short-term Gold Breakout after the Holidays
Gold has been weak for the past 2 months and right now we are at one of the lowest levels since 2010. After the expected Fed Rate hike, USD has been starting to get weaker. Historical statistics show that after rate hikes in the past, USD slowly begins to get weak and starts a new downtrend. Also, gold has historically been strong after Christmas and near New Years. We will try to ride the uptrend.
This is a simple but thoroughly thought out strategy that is a high probability play. For those who missed the long at around 1050, it will be ideal to wait for a pullback to around 1062 or even better 1050, before going for a medium-big position. If it does not pullback before then, long a smaller position above 1080 in which it breaks out of short term fibonacci and short term resistance trend line. Conservative target is 1102 for now, and 1135 if uptrend remains strong.
This will be a shorter term trade and one must monitor XAUUSD and the DXY daily to move stop losses if the uptrend begins to look weak or if the DXY rallies for some odd reason.
Ideal entry time will be on Monday the 28th or Tuesday the 29th.
Remember risk-management is key, anything can happen at anytime in the markets and this idea is just my personal opinion.
Happy Holidays and Happy Trading.
This is a simple but thoroughly thought out strategy that is a high probability play. For those who missed the long at around 1050, it will be ideal to wait for a pullback to around 1062 or even better 1050, before going for a medium-big position. If it does not pullback before then, long a smaller position above 1080 in which it breaks out of short term fibonacci and short term resistance trend line. Conservative target is 1102 for now, and 1135 if uptrend remains strong.
This will be a shorter term trade and one must monitor XAUUSD and the DXY daily to move stop losses if the uptrend begins to look weak or if the DXY rallies for some odd reason.
Ideal entry time will be on Monday the 28th or Tuesday the 29th.
Remember risk-management is key, anything can happen at anytime in the markets and this idea is just my personal opinion.
Happy Holidays and Happy Trading.