After 5 days of bearish pressure we are looking for a pullback into our green zone ( support / resistance level ) Already today the bulls have taken charge and are pushing price up to this level.
Once price hits this level we will be looking for a bounce and further bearish movement, but we will only take this trade if the opportunity presents itself.
We can see that XAUUSD is overall in a bearish trend at the moment after a few days of downwards movement but we are expecting to have a slight pullback before price carries on making moves to the downside, this pullback is currently happening at the moment and we are expecting a further bullish move of around 40-50 pips before price carries on going down.
After the successful short trade on gold last month I am now looking to short the precious metal again at the $1308 level.
Price has made a lower high and is now approaching the descending trendline along with the Fib 0.618 level at $1308.
Stop Loss is placed around 50 pips above entry with a profit target at the Fib 1.27 extension level around $1270
We can see that price recently respected our resistance level even after a huge push up in the aftermath of the FOMC results which saw the USD weaken after the FED announced there would be no interest rate hikes this year... This was bad news for the USD which caused this bullish run.
Taking all this into account and the forever weakening of the USD and the US...
We are expecting to see a retest of this resistance level after a bearish day yesterday before price makes more bearish movement and reaches or support zone ( green box ) before market close.
I wouldn't go jumping into a short position before we get the re test of this level as the markets seem to be all over the place at the moment, and always trade with correct...
Purple box is TP1, Green box TP2.
You can see that price respects our levels really well on gold, these are levels that have been drawn on our chart for months and price just keeps coming back to respect them time and time again making it easy money.
Now we have loads of news surrounding USD throughout the day so I would trade with caution as there will be a lot...
Gold has been travelling in a very large ascending channel however it broke out to the downside, came back up to retest the channel at the 0.618 of the impulse wave and now price has broken out to the downside of the ascending trend line it was travelling above to retest the channel.
price is now going up to the 0.618 of the retest move to retest the trend line...
We posted a short on this pairing a couple of days ago and we made 60 pips on it... so well done if you got on ;p
Now we can see that price broke a strong TL and strong resistance, we can see that price has broke this resistance and has come down and now tested it as support.
With the break of the trendline and resistance we can only see bullish movement from...
1304.041 is acting as a very strong level, this time it is been used as resistance, but you can see it has previously been used as support.
We also have a lovely trendline that has formed and this happens to be very close to our resistance level... this makes it a double strength setup... if this trade doesn't go bearish from here I will eat my hat ;p
BREAK AND RETEST
1.WAIT for a 4hr close above resistance zone
2.WAIT for retest back into or close enough to the zone .
3.Wait for some sort of rejection on the 30min or hourly.
4. Wait for price confirmation
The trend is your friend, it makes no sense to trade against it. my analysis is done according to momentum.
stops should be adjusted based...
After Fridays bullish run pushed price through the roof because of worse than expected NFP results and the weakening stock market and US economy we can see price smashing rite through our next possible resistance of 1304.301 and making a run up to our green zone.
Its because of the panic in the US economy,US30 and stock market that buyers rushed to gold as a safe...