Gold has been taking a beating in the past week. The reasons I am looking to go long on this :
- Completed a bullish Bat pattern
- Bottom of the equidistance channel (counter trend trade)
- RSI (H4 & D1) at the oversold region
- Bullish divergence on the D1 RSI (see arrow on chart), also a bullish divergence on the H4
Stops should be below the 1200 levels, targets could e back up to 1300 levels
Took the long at 1211.50, putting my stops below 1200 at 1188.
Currently about $6 in the money. AUDUSD (highly correlated pair) has moved up quite a lot but not GOLD. Stock market keeps going higher. Don't quite like this back drop for gold. Must break above 1230 soon if this bull is strong. Tightening SL to 1995.00 to reduce risk. Might just cut the trade at break even if it starts dropping while I am watching.
SL = 1195 (typo)
Trade closed: stop reached:
Sorry for the late update. Trade stopped towards the end of last week