forexTrdr Gold- DESCENDING TREND, 3X LOWER HI + OVERBOUGHT
Good morning traders,
Looking at gold versus US dolllar here after the weekend news of Trump looking to escalate trade tensions with China, completely against what the business media had been suggesting last week of a deal being finalised this week. Fake news it appears! Needless to say markets were risk off and gold has spiked back up to resistance levels around 1282-1285 where it has steadied.
On our trading view chart we have highlighted a descending trendline forming on the upper wicks from three spikes forming a series of lower highs. Unusually for us we have provided a secondary chart down at the bottom of our trading view chart to show hourly moves which show the market has met resistance around 1283 area today and is currently pulling back slightly from that region. This is in line with a trend forming on RSI and an overbought status on stochastics.
This week looks like it could be a challenging week driven by Trump China headlines so we will be looking to keep our lot sizes low playing risk close to home. If the trade plays out as we expect we would be looking at levels around 1272 to take profits giving us a 2.4 risk/reward.
As always we try to keep our analysis clean and easy for anyone to be able to follow but should you want to learn more then please do get in touch for more trades.
Comments and feedback are always appreciated from anyone in the trading community
Good luck trading
from the Team at forexTrdr
find us on instagram, twitter and Alexa flash briefings
Looking at gold versus US dolllar here after the weekend news of Trump looking to escalate trade tensions with China, completely against what the business media had been suggesting last week of a deal being finalised this week. Fake news it appears! Needless to say markets were risk off and gold has spiked back up to resistance levels around 1282-1285 where it has steadied.
On our trading view chart we have highlighted a descending trendline forming on the upper wicks from three spikes forming a series of lower highs. Unusually for us we have provided a secondary chart down at the bottom of our trading view chart to show hourly moves which show the market has met resistance around 1283 area today and is currently pulling back slightly from that region. This is in line with a trend forming on RSI and an overbought status on stochastics.
This week looks like it could be a challenging week driven by Trump China headlines so we will be looking to keep our lot sizes low playing risk close to home. If the trade plays out as we expect we would be looking at levels around 1272 to take profits giving us a 2.4 risk/reward.
As always we try to keep our analysis clean and easy for anyone to be able to follow but should you want to learn more then please do get in touch for more trades.
Comments and feedback are always appreciated from anyone in the trading community
Good luck trading
from the Team at forexTrdr
find us on instagram, twitter and Alexa flash briefings
Trade active:
take profit 1 hit.. stop loss to entry = risk free trader
Trade closed: target reached:
closed back out at entry after hitting take profit 1. Looking to re enter is Stocks settle