Gold broken through technical floor - bearish bias
I didn't see this coming... Gold has broken below a technical floor. Back on the 19th July, what looked like the end of a trend created a low of 1211. Gold has now broken through this floor and is bouncing off another fib level at 1207.
Looking at the daily momentum, there is still scope for price to fall further as momentum is still down. Looking even further afield, there is a 127% fib extension of the wave 5 down which happens to be at the psychological level of 1200.
That's a little hard to ignore.
For those intra-day traders who like trading off the 1hr charts, this is a good time to go short. Just watch for the breach of 1207 and stochastics again to confirm the short.
For me... my trading strategy won't allow to enter the trade, but the signs are there for a fall.
Looking at the daily momentum, there is still scope for price to fall further as momentum is still down. Looking even further afield, there is a 127% fib extension of the wave 5 down which happens to be at the psychological level of 1200.
That's a little hard to ignore.
For those intra-day traders who like trading off the 1hr charts, this is a good time to go short. Just watch for the breach of 1207 and stochastics again to confirm the short.
For me... my trading strategy won't allow to enter the trade, but the signs are there for a fall.
Trade active:
Gold broke below a key technical barrier which, in my mind, was at 1200.
Using the 10 minute chart, I shorted at 1197, stop 1203 and limit at 1190. I admit the 1:1 ratio is lousy, but since stochastics were oversold, I view it as solid considering a technical floor has just been breached.
This is purely a scalping exercise as I still believe a bull run is coming. I'm not confident of a continued bear run based on the long range charts.
I reviewwed how I plotted the 5 wave, since the 5th wave keeps rolling.
Using the 10 minute chart, I shorted at 1197, stop 1203 and limit at 1190. I admit the 1:1 ratio is lousy, but since stochastics were oversold, I view it as solid considering a technical floor has just been breached.
This is purely a scalping exercise as I still believe a bull run is coming. I'm not confident of a continued bear run based on the long range charts.
I reviewwed how I plotted the 5 wave, since the 5th wave keeps rolling.
Trade closed: target reached:
It's a scalp, so I closed at 1193 as the 10 minute chart hit the oversold region.
Comment:
Looking at the weekly chart, there is still a bearish bias.
If I was to project lower, as counter intuitive as it may seem, I forecast interim targets of 1165 and a final target of 1150.
What I am finding is in a constant "death by a thousand cuts" style bear market, I keep trading the 1hr and 10min charts to get the signals to short. The downside is that since I am trading off the 10 min charts, the drawback is I need to constantly watch Gold.
If I was to project lower, as counter intuitive as it may seem, I forecast interim targets of 1165 and a final target of 1150.
What I am finding is in a constant "death by a thousand cuts" style bear market, I keep trading the 1hr and 10min charts to get the signals to short. The downside is that since I am trading off the 10 min charts, the drawback is I need to constantly watch Gold.
Since the weekly chart is bearish, I am trading on the 10 minute chart and shorting on massive stochastic swings into overbought.
off topic... i have lost the ability to screen shot, so I cannot show my new targets and fib levels. :-(