Gold (GC1! Futures) Mid Term Update
Updated
Following on from my analysis from yesterday, towards the end of yesterday's trading session, Gold printed a very strong hanging man candle.
Traditionally, when this candle is printed near the top of a rally, it signifies a substantial move down.
Also keep in mind, data releases so far for this week have been good for the dollar, and let us also remember that while the war on Palestine is very sad, the market is over the war shock now.
We were always in an overall bearish trend, so now I expect gold to continue its move down. Infact, in reference to my prior weekly analysis, which places the long term target at 1745 - future price - we can now expect the long term scenario to start playing out.
I will be updating this post through the day. I have already gone short with a SL above the current daily high. If I see another good shorting location in the day, I will post it here as a comment.
Please be aware, this is not financial advice.
Traditionally, when this candle is printed near the top of a rally, it signifies a substantial move down.
Also keep in mind, data releases so far for this week have been good for the dollar, and let us also remember that while the war on Palestine is very sad, the market is over the war shock now.
We were always in an overall bearish trend, so now I expect gold to continue its move down. Infact, in reference to my prior weekly analysis, which places the long term target at 1745 - future price - we can now expect the long term scenario to start playing out.
I will be updating this post through the day. I have already gone short with a SL above the current daily high. If I see another good shorting location in the day, I will post it here as a comment.
Please be aware, this is not financial advice.
Note
Slight correction:My SL is above yesterdays high, NOT todays current high.
I posted this idea very early in the morning so I lost sense of time
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Just a quick tip, when you see hanging man candles form in the future - on the 4HR - take a FIB from the most recent high to the bottom of the hanging man candle.Notice how the price came to retest the 0.618 of that move. Also note how this lined up well with the minor zone:
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Looking at the 30M chart, notice how it is rejecting this zone multiple times: Note
Data has released:1) Initial jobless claims is lower than expected which is good for the dollar
2) Fed manufacturing is down, which is bad for the dollar, but keep in mind that this is still better than the last reading
3) Continuing jobless claims is higher, which is bad for the dollar but not as significant points 1 and 2
This should add strength to the gold sell off
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Price is also testing the minor zone again. I have added to my short here: SL's are still above yesterdays high. Adjust your lot size accordingly and manage your risk...
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Gold is rejecting the news for now:Let us see what powell has to say at 17:00...
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There is now 1 hour until Powell talks..You have two options:
1) If you shorted the hanging man candle yesterday, set your trade to breakeven
OR
2) Leave your SL above yesterdays high to account for any volatility
Personally, I will be holding my SL above the high of yesterday, but you need to manage your own risk.
Note
27 minutes to go.Now is the time for you to decide your bias.
Manage your risk accordingly. Personally I will continue to hold short.
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No idea where Powell is? My stream does not seem to be working...Note
Still short. Absolutely nothing has changed:I hope you can appreciate how simple trading becomes when you enter at logical positions. Your risk is predetermined, essentially taking out any and all emotions...
Note
Profit taken from a laddered position at the top of the zone, very simple. Going to let the other part of the trade - from 1953.84. Going to let the rest run.
Trade closed manually
Letting the final part of the position run.
Key point: I am active in the trading view chat, so keep an eye out for what I am doing at the time.
Not bad!
Trade closed: stop reached
2nd half of the position stopped.Looking to re-assess again 19:00, with a new outlook in the morning.
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