Ok, so we've seen the rocket being sent to the sky - 700 pips in 7 days... But as we know, once a rocket loses its momentum it's slowing down and eventually comes back down and goes lower than before. This movement was predicted by the bad US data ( worst in 10 years) and the ongoing trade war. Let's look at the gold chart in depth.
1. We saw Gold coming out of...
STOP LOSS - 108.333
TAKE PROFIT - 108.864
Risk on the trade - 1%
We have seen some bullish momentum on this trade where price had a brief pause and consolidated sideways creating a continuation pattern. Price has broken above and we may see price move to our take profit.
Price has currently retraced to the 50% fib retracement level and Bearish divergence is evident. Price is currently looking good for a potential push lower to the price level i have marked with the green horizontal line.
Entry - Grey line
Stop loss - Red line
Green line - Take profit
Risk exposure - 1%