Gold has seen a turn in direction today, the thick red line is a very key support/resistance, breaking above that and retesting is extremely bullish as you can see we broke the level but failed to hold for a sustained period of time, we are holding a key level of support which has been tested several times on the 15 min chart.
using a fib retrace from previous swing low we can look for goos short entry points, 0.382 is usually the best starting point for a short a retrace back to this level then a rejection would be perfect, tp at red line for a scalp short trade. another possible entry would be 1776 (yellow line), price sees a lot of action at this level so tight stop loss will need to be set here, would also mean a higher high is made if we break through it probably showing early signs of a trend reversal. thats what makes me keen to see a test of the 0.382 as it would signify lower highs validating the short term bearish pattern.
things to look for:
- red support line holding and volume bounce back to key fib levels
- test and possible rejection of 0.382, short opp with tp at red line
- test of yellow line and wait for possible new higher high wait for retest and long to 0.618 (would probably stay away from a long until sure of a trend reversal)
using a fib retrace from previous swing low we can look for goos short entry points, 0.382 is usually the best starting point for a short a retrace back to this level then a rejection would be perfect, tp at red line for a scalp short trade. another possible entry would be 1776 (yellow line), price sees a lot of action at this level so tight stop loss will need to be set here, would also mean a higher high is made if we break through it probably showing early signs of a trend reversal. thats what makes me keen to see a test of the 0.382 as it would signify lower highs validating the short term bearish pattern.
things to look for:
- red support line holding and volume bounce back to key fib levels
- test and possible rejection of 0.382, short opp with tp at red line
- test of yellow line and wait for possible new higher high wait for retest and long to 0.618 (would probably stay away from a long until sure of a trend reversal)