Gold Failed to Break Support, Bullish Reversal Possible
Gold failed to break the support level of 1885, which is a bullish sign. I have taken a long position at 1887 with a take profit target of 1903. The area between 1904 and 1906 is our resistance level, which may cause a reversal in price to 1896. From there, I am looking for a further bullish reversal to 1915.
Analysis:
The price of gold has been in a downtrend since reaching a high of 2075 in August 2022. However, it has recently found support at the 1885 level. This is a positive sign, as it suggests that the downtrend may be coming to an end.
The area between 1904 and 1906 is a resistance level that the price may need to break through in order to continue its upward momentum. If the price is able to do so, I am targeting a move to 1915.
Risks:
The main risk to this trade is that the price of gold could break below the 1885 support level. If this happens, I would recommend closing the trade at a loss.
Analysis:
The price of gold has been in a downtrend since reaching a high of 2075 in August 2022. However, it has recently found support at the 1885 level. This is a positive sign, as it suggests that the downtrend may be coming to an end.
The area between 1904 and 1906 is a resistance level that the price may need to break through in order to continue its upward momentum. If the price is able to do so, I am targeting a move to 1915.
Risks:
The main risk to this trade is that the price of gold could break below the 1885 support level. If this happens, I would recommend closing the trade at a loss.
Comment:
Take Profit 1903 Smashed
Comment:
Take profit hit as expected: Your take profit at 1903 was hit as expected. This is a good sign that your trading idea was sound.
Price fell back to test support: After hitting my take profit, the price fell back to test the 1885 support level. This is a normal retracement after a strong move up.
Price found traction to go back up: The price found traction to go back up to 1904-1906. This is a bullish sign and suggests that the uptrend is still intact.
Looking for buy entries above 1906: Personally, I am looking for buy entries above 1906 and targeting the 1912-14 area. This is a good risk-reward trade as the potential profit is greater than the potential loss.
Price currently around 1903 at strong resistance: The price is currently around 1903, which is a strong resistance level. It is possible that the price will test the 1900 support level before moving up again.
Overall, the outlook for your trading idea is bullish. The price has been making higher highs and higher lows, which is a sign of a strong uptrend. However, it is important to keep an eye on the price action and be prepared to adjust your trading plan if necessary.
Here are some additional things to keep in mind when trading this idea:
Use a stop-loss order to protect your profits.
Set a profit target for each trade.
Don't trade more than you can afford to lose.
Price fell back to test support: After hitting my take profit, the price fell back to test the 1885 support level. This is a normal retracement after a strong move up.
Price found traction to go back up: The price found traction to go back up to 1904-1906. This is a bullish sign and suggests that the uptrend is still intact.
Looking for buy entries above 1906: Personally, I am looking for buy entries above 1906 and targeting the 1912-14 area. This is a good risk-reward trade as the potential profit is greater than the potential loss.
Price currently around 1903 at strong resistance: The price is currently around 1903, which is a strong resistance level. It is possible that the price will test the 1900 support level before moving up again.
Overall, the outlook for your trading idea is bullish. The price has been making higher highs and higher lows, which is a sign of a strong uptrend. However, it is important to keep an eye on the price action and be prepared to adjust your trading plan if necessary.
Here are some additional things to keep in mind when trading this idea:
Use a stop-loss order to protect your profits.
Set a profit target for each trade.
Don't trade more than you can afford to lose.
Trade closed: target reached:
Take Profit Smashed(1914)