After reaching near all-time high at $2070, gold has felt about $120 in just a couple of days. It is a fast downward correction which has shaked out many weak hands. However the daily trend remains bullish overall.
Gold is currently back to the trend line where it started its bull-run from $1780. Unless this trend line is broken, it should provide strong support for gold.
Note that after making the first high at $1975, gold retraced roughly 61.8% back to the trend line before resuming its uptrend.
After making the second high at $2070, gold now has retraced 61.8% to 1950 and back to the trend line again.
The downward correction looks like a falling wedge pattern which usually leads to quite a bullish reversal when price gets really compressed to the end of the wedge.
Our strategy:
Buy-area should be around $1940-$1950 with stop loss under $1920
First target $2000. Second target $2050-$2075.
Gold is currently back to the trend line where it started its bull-run from $1780. Unless this trend line is broken, it should provide strong support for gold.
Note that after making the first high at $1975, gold retraced roughly 61.8% back to the trend line before resuming its uptrend.
After making the second high at $2070, gold now has retraced 61.8% to 1950 and back to the trend line again.
The downward correction looks like a falling wedge pattern which usually leads to quite a bullish reversal when price gets really compressed to the end of the wedge.
Our strategy:
Buy-area should be around $1940-$1950 with stop loss under $1920
First target $2000. Second target $2050-$2075.
Trade active
Added half contract at 1950.Trade active
Added another half contract at 1930. Now got a full contract at an avergae 1940.
All stop loss under 1920.
Note
Moved SL from 1920 to 1910 since those margin hunters are trying to force margin calls by flushing the price down quickly. After moving SL, the risk/reward ratios is still 1:2 minimum with the potential to be 1:4
Note
NO SL Yet. Still holding onTrade closed: stop reached
Stopped out due to FOMC
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.