I believe if we look at the monthly charts and the weekly, we can see that there is a strong possibility to make this one go down furthermore. It is testing the weekly resistance zone now, and to be honest, I'm jumping into this one a little early though, I wanted to wait for an extra price action confirmation, but my RR is 1 to 3. As I use to say, with a RR 1:1...
So this trade is based on a monthly timeframe, and the fact the institutional trades are still holding huge amounts of long positions on Gold. We can see that price has already bounced off from these levels before (monthly support), and retail trades are already lined up with lots of short positions from here. Therefore this should be a great entry area to go...
As I'm writing this I'm already sitting in a break even trade, but I think we have a possibility to test 72.50 area for stop loss hunting. Looks like it on that daily. Also my TDI indicator gave me a fine signal when I was entering.
I'm sitting in a long position on this one. My overall forecast is that it may break upper high at 1.2812 Looks promising on the daily and weekly charts, but I guess I'll just have to see. We my also have a support area to hold around 1.26 levels.
At the moment I see a possible head & shoulders pattern, and I was a little early, but I took a short trade as well with a 1:1 RR. There are significant levels below 1.2160 and 1:2074 We could see some LS hunting there but this whole thing is tricky... We can also easily see a spike as a rejection of these price levels, to shoot back up towards 1.24 as well......
We can see that this price area is very significant. I could turn to a support and we can see further projection of price up to 1.11 area. There can be good entry points here on lower timeframes. Let me know what you think! Cheers!
I'm tired, almost asleep. I hope I'll dream of something nice.