The last 3 days saw 3 dojis (red highlighted ) and failed to break the long down sloping channel top that dates back to July 1, 2016. If you remember from my post last Friday, I was concerned about the big gap from the day after the FOMC and that it would need to get filled before price could move higher. Well, today we got the gap filled, and more. As a result, I closed my long Gold trade at 1332.10 for a solid 10 point profit. While I was 'anticipating' a larged move higher, I trade what I see, not what I think! And remember, protect your profits!
Here is what I see now. The has broken below the 80 line. Also, those 3 dojis over the last 3 days show that price could not even touch the outer BB. The same price action happened on the last up swing. All combined suggests that price is going to go lower before it goes higher. As a result, I entered a short trade on Gold @ 1333.1.
I am watching some key support levels below. First is the midline of the BB. Price is currently hovering at that level. And below that there is the long term support .
Price has not been able to break out of the outer BB in the last few cycles. I will be trading the small range for quick profits until there is a breakout on either side.
Safe trading and lock in those profits!