The spike we had today I believe it was caused by the BIG PLAYER of the game who wanted to hit stop losses which were all around 1325-1327 area in order to take back control of the market: THE CHART IS STILL QUITE CLEAR, SHORT !!!!! Here is another confirmation of the trend reversal we were about to experience and now we are IN !!
Elliot Wave needs the last target to be reached and this target is in the 23.60% Fibonacci at 1280 and if break below that we might see it going down to the next 38.20% Fib at 1238-1240 area. Here you have the trend reversal indicator: -Hanging Man+doji+inside bar+shooting star still forming at the top -hystorical pullback from 1330-1350 (major resistance) to 1280-1240 area, we have seen it quite often in the past years -Elliot wave forming which needs last target to complete -OVERBOUGHT indicator RSI 14 and Stochastic in both DAILY and WEEKLY chart -Stop Losses were hit violently which means big player create spikes as the price might go in the opposite way (check history for examples) -ALL THE INDICATORS ABOVE HAVE A CONFIRMATION IN THE DAILY CHART
Follow major support and resistance to enter,exit, set SL and TP of your trades and GOOD TRADING TO ALL OF YOU.
This analysis is only meant to be educational and doesn't mean to replace a professional financial advisor entity as in trading your capital is at risk and not responsability for any loss will be taken by the author of the post.
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GOLD approaching very very strong resistance at 1330-1332...any break above that might invalidate my vision and a new strategy shall be arranged; however, any sign of strong bearish sentiment (fundamental, engulfing candles, hanging man 1h-4h chart) should instead confirm my view with a retest of the spoken level....this to happen either today or during next week....we'll see !!!! good trading to all of you :)
@Macrown, absolutely possible...the truth is that when gold is behaving like in this period, going up and down between to very important and major support and resistance, a move in either way will be BIG and CLEAR and the anyone has the chance to jump in and make some profit....however I believe that as long as it stays between 1305-1308/1329-1333 it is just bouncing, a break below or above that might see what you are suggesting :)
@investment6300, If you combine waves with cycles and consider we in the first cycle of year which always stretch ave ridge 8 weeks with shortest 5 to 21 over past 5 years
@investment6300, ok, interesting.....this is why I don't jump blind folded into the trade but ALWAYS AND EVER wait for confirmation :) I do have indeed a range of prices where it would just confirm the invalidation of my idea (1332-1340 long term)...we'll see :)
thank you very much for answering and let's keep advising each other, good trading !!!!!
simonepepita91
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@simonepepita91, we are in a very important range of major support and resistance making it simpler: 1300-1305/1326-1332.....any up and down within this range is only addressed as a bouncing ball and who is trading it is only gambling...the indicators though, candles and other signals I mentioned in the post are suggesting that this ball might soon break below 1305 and I will follow the price once it makes it clear in which direction it means to go :)