Reasons for entry:
1. Gold has been in a downtrend since August. The trend line has 2 touches and a wick has formed at the are of the 3rd touch signalling a potential validation of the trend line which would send gold back down.
2. Gold has been unable to close past the 1888 fib level the past two days signalling strong seller presence at the area.
3. Gold has just hit the 1900 key level, at this level gold has reversed previously and it's also a level I predict banks and hedging get involved at.
4. Daily stochastic showing signs of oversold.
Stop loss set at 1915. Take profit at 1841.
Let's see how it goes.
1. Gold has been in a downtrend since August. The trend line has 2 touches and a wick has formed at the are of the 3rd touch signalling a potential validation of the trend line which would send gold back down.
2. Gold has been unable to close past the 1888 fib level the past two days signalling strong seller presence at the area.
3. Gold has just hit the 1900 key level, at this level gold has reversed previously and it's also a level I predict banks and hedging get involved at.
4. Daily stochastic showing signs of oversold.
Stop loss set at 1915. Take profit at 1841.
Let's see how it goes.
Trade closed: target reached:
Take profit reached just 3 hours later. Trade of the year.