Tonight is big. The chart is self explanatory, I have started taking out my long positions and accumulating shorts. Though the bull run remains strong and just because of one candle down, it does not signal a crash. TBH, there are a lot of reasons for gold to run hot in the past month, to me it was USD weakness that attracted the first wave of speculative buying and then shorts to cover.
This is a channel dating back to the summer. If it breaks upward I will take out my shorts. The issue is that shorts need a strong dollar. That has been stiffled by PBoC selling at night (PM me for details)
HP
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dxy retrace before loading up a good rally. Wait for another entry. DXY at 100.2x- 100.3 is the range to short more gold
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Added more shorts. Closed out all longs that I had(check previous idea) on gold.
Now waiting on bearish accumulation. I will not add further shorts as much as I like this trade.
Keep an eye on CNYUSD, as manipulation can persist. HP
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Keep an eye on CNY/USd action at night.
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broke the outer wall of the bullish channel, promising but no time to celebrate yet. I don't kniw how to add charts to the comments. Do let me know, if you have the goods.
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If it goes over 38 I'm out with a gain/ (loss) of ($3) average so It'll cost me a modest amount. Nothing to fret because if it bounces off the support I can buy(once confirmed by successive closes) and make much more. I will post updates as new ideas if it does. Best of luck, don't be stubborn
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So as you can see it was pushed down at 38-40 resistance and died. This was rocky. Now we are under 20 so now next support is 1200, if we close at these levels.
Also someone asked me why I wait for the close. Well there are a lot of different fish in the sea, and they all operate under different schools of thought, the close is 1 way to ensure that they have spoken and that you see what they see. Another reason is that the close meanss that the popular candlesticks are indicative of the different patterns they look for, I mostly look for strong rejections( in other words a long spike down or up), well for those you need close too.
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We have reached the first support, I took some profits, but will add them back one I see a bounce Now I got about 35$ in profit on each ounce. Not bad for a futures trader.
1200-1205 is next support, levels to watch on dxy is 101.97-102.01.
Now we are at 1208, we should see acceleration of the selling by the Asia market.
Tomorrow dollar should continue its ascent.
The plot I had told some on TV about the Chinese lowering the USD strategically selling USD at vulnerable levels seems to have been tapered off.
I'll update you on that as we progress, truly my goal is to cover at 1150 level but we need to update our technical models as we get more information.
Now we are at 1208, we should see acceleration of the selling by the Asia market.
Tomorrow dollar should continue its ascent.
The plot I had told some on TV about the Chinese lowering the USD strategically selling USD at vulnerable levels seems to have been tapered off.
I'll update you on that as we progress, truly my goal is to cover at 1150 level but we need to update our technical models as we get more information.
All the Best,
Human Piranha