Engaging Buying order / #1,835.80 Target, then #1,752.80 decline
Gold's general commentary: Gold keeps close track of the DX (strongest correlation I have at the moment) and Bond Yields (# -1.87%), as in the absence of macroeconomic news, correlating assets are consolidating, ignoring though the Usd-Jpy Trading near the Resistance (on Short-term recovery), which showcases that Gold continues to be detached to Usd-Jpy and follows DX / Bond Yields and rallies don’t (as for the current configuration at least) translate into equal rallies on Gold as long as DX isn't falling. Gold is not too close to the Daily chart #MA50 (which was broken only twice since June #16) and this is not the time to take wild bets on the market, that is obviously waiting for catalysts to move (Investors await the NFP announcement throughout Friday’s session). Right now Buying towards the Daily chart’a Resistance zone, having a stop on the Hourly 4 chart’s Support near #1,800.80, is the most optimal Trade to take, if of course current variance allows.
Technical analysis: Today’s U.S. session aswell should have Buying sentiment, but as I cannot rule out #5-Hour stagnation ahead. It is important to note that Gold is cyclical asset and what caught my attention is current (#3-Month old) fractal. Gold tends to engage the aggressive takedown after Double Top rejection on Daily chart. Throughout May #26 - July #11 fractal, Gold made an Double Top break attempt but got rejected and engaged the #140 point decline. On July #15 - August #8 fractal, Price-action made an Double Top formation and engaged the (almost #150 point) slide. Similar fractal could be repeated now, and if Gold honors it, I am looking at decent possibility of #1,678.80 Lower Low extension test, and break of can put final Selling extension in motion, currently Trading on #1,585.80 (April #6, #2020) Low. Regarding the RSI indicator (strongly limiting the uptrend), variable is close to Medium-term Resistance, which is rejecting the Price-action since June #10. Means that Gold should be Pricing a Top (temporarily or not) soon and engage the Selling sequence.
Since many Traders of mine made an inquiry regarding how I determine / should position be kept or closed (when is the best time to close the order):
Notice that I’ve referred to this approach as a guideline. It requires thinking (constant monitoring of the Gold charts) and work on Trader’s end to ensure these guidelines maximize the effectiveness of Investing style. All Investors are different, so there is no hard-and-fast Buying / Selling rule which all Investors should follow. Even with these differences, it is vital that all Investors have some sort of “exit strategy”, which I call Risk management (which I am using, especially if Volatility is on the market). This will greatly improve the odds that the Investor will not end up holding worthless Position at the end of the session which will provide nothing more than losses. The point here is to think critically about every Position and what could go wrong (especially Fundamental shocks), also create an scenario in which Trader / Investor executes the Position to protect the remaining capital / capital preservation is equally important as a Profitable call, and trust the model (reasons) why he / she entered the market in the first place. Trader should know what his / hers Investor style is and then use mentioned strategy to stay disciplined, keeping the emotions out of the market which can harm the capital. Myself, my approach is more Medium-term and I rely mostly on Technical side. So, Traders understand that the answer to your question is not very easy to give. There are numerous parameters to account to, and even then, there are news that may distort all this. Best asset to rely on is experience, and in certain situations closing the order before the Target, to prevent rebounds and further unexpected scenarios.
My position: I have engaged Buying order with #1,812.80 point entry, calling for #1,835.80 Buying extension, looking to continue my current #8 Profits run. If current fractal is yet to be repeated, expect aggressive #150 point decline on the aftermath towards #1,678.80 Lower Low extension.
Technical analysis: Today’s U.S. session aswell should have Buying sentiment, but as I cannot rule out #5-Hour stagnation ahead. It is important to note that Gold is cyclical asset and what caught my attention is current (#3-Month old) fractal. Gold tends to engage the aggressive takedown after Double Top rejection on Daily chart. Throughout May #26 - July #11 fractal, Gold made an Double Top break attempt but got rejected and engaged the #140 point decline. On July #15 - August #8 fractal, Price-action made an Double Top formation and engaged the (almost #150 point) slide. Similar fractal could be repeated now, and if Gold honors it, I am looking at decent possibility of #1,678.80 Lower Low extension test, and break of can put final Selling extension in motion, currently Trading on #1,585.80 (April #6, #2020) Low. Regarding the RSI indicator (strongly limiting the uptrend), variable is close to Medium-term Resistance, which is rejecting the Price-action since June #10. Means that Gold should be Pricing a Top (temporarily or not) soon and engage the Selling sequence.
Since many Traders of mine made an inquiry regarding how I determine / should position be kept or closed (when is the best time to close the order):
Notice that I’ve referred to this approach as a guideline. It requires thinking (constant monitoring of the Gold charts) and work on Trader’s end to ensure these guidelines maximize the effectiveness of Investing style. All Investors are different, so there is no hard-and-fast Buying / Selling rule which all Investors should follow. Even with these differences, it is vital that all Investors have some sort of “exit strategy”, which I call Risk management (which I am using, especially if Volatility is on the market). This will greatly improve the odds that the Investor will not end up holding worthless Position at the end of the session which will provide nothing more than losses. The point here is to think critically about every Position and what could go wrong (especially Fundamental shocks), also create an scenario in which Trader / Investor executes the Position to protect the remaining capital / capital preservation is equally important as a Profitable call, and trust the model (reasons) why he / she entered the market in the first place. Trader should know what his / hers Investor style is and then use mentioned strategy to stay disciplined, keeping the emotions out of the market which can harm the capital. Myself, my approach is more Medium-term and I rely mostly on Technical side. So, Traders understand that the answer to your question is not very easy to give. There are numerous parameters to account to, and even then, there are news that may distort all this. Best asset to rely on is experience, and in certain situations closing the order before the Target, to prevent rebounds and further unexpected scenarios.
My position: I have engaged Buying order with #1,812.80 point entry, calling for #1,835.80 Buying extension, looking to continue my current #8 Profits run. If current fractal is yet to be repeated, expect aggressive #150 point decline on the aftermath towards #1,678.80 Lower Low extension.
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- Few other un-official channels are not mine, they are copies using my real information (impersonating me and my work / identity) so keep that in mind and beware of those.
