Currently, gold is favoring shorting with 1770 breaking, there is possibility it will drop to 1758 or even as low as 1720, thus forming a double bottom before rallying up again and possibly hitting 1900 this time. Another scenario possible here is that 1758 will act as its best support then will re-test the "dashed" market structure plotted, hitting 1900 eventually since it is heavily supported by an ascending channel.
In general though, what would I favor as a scalper? I would short until 1758 then wait for a re-test to see which scenario will happen since should 1758 break and descend to 1720, 3000+ pips would put my port at risk should I change gears to long. Compensation can be done however by setting 1 long and 1 short from 1758. A cut should be made should it hit more than 1000+ pips for both since either side would entail rewards worth more than 3500 pips.
Another scenario: As a swing trader, I personally will favor should gold return to 1679 to have a large impulse movement which can scale up higher than 2074 itself since the overall market structure is a falling wedge, thus calling for a long term bullish run.
Disclaimer: This is for educational purposes only. I am not a guru nor am I a certified financial analyst. Hope to hear from you.
In general though, what would I favor as a scalper? I would short until 1758 then wait for a re-test to see which scenario will happen since should 1758 break and descend to 1720, 3000+ pips would put my port at risk should I change gears to long. Compensation can be done however by setting 1 long and 1 short from 1758. A cut should be made should it hit more than 1000+ pips for both since either side would entail rewards worth more than 3500 pips.
Another scenario: As a swing trader, I personally will favor should gold return to 1679 to have a large impulse movement which can scale up higher than 2074 itself since the overall market structure is a falling wedge, thus calling for a long term bullish run.
Disclaimer: This is for educational purposes only. I am not a guru nor am I a certified financial analyst. Hope to hear from you.
