I've seen this tricky pattern before so I decided to update the hardcore in the case if we break higher.
It's impossible to update below the last post because you will not be able to trade this as the trolls will prevent you to make the good decision.
Any question just PM to me.
The rally is slowing and we got our first correction with a bit higher volume than in the low volume holiday season.
We have every chance now to have some kind of pullback. If we don't get it in the next few days - I mean if this channel is not breaking down I see a high chance that banks will try to pull price up above last year's high.
If we break above 1332 ( it means a break up from the uptrend channel) than I'm 100% sure we are going to test and break marginally above last year's high. (We might move in the channel for some time before an upbreak or downbreak, so get ready to have some pingpong.)
Why is it important? A break above last year's high (1358$) a perfect point to suck in all the goldbugs into a big long position as a "breakout".
But that breakout will be a false breakout ( a bull trap) and price should turn down immediately on the same day with a close below last year's yearly high.
So the plan is the following:
IF we break above 1332 I will cover all short position with starting a double long position for the ride to the break of 1358$. There will be a stop run and I will close all my longs where goldbugs are buying the breakout.With closing all the short covers we will be ready for riding the wave down in the original short position as goldbugs are stopping out in the drop.
SO if you have 10 LOT short right now you will need to buy 20 LOT long and close it at the break above 1358. I think the stop run will trigger a 8-10$ move so I suggest to close around 1363-1365. If you don't have the chance to watch it whole day just set a take profit at 1360$.
YOU NEED TO TAKE PROFIT on the longs because bulls will be punished hard on the way down.
If the channel break down there is nothing to do. We wait for the DCL. I will launch the sign when we need to take profit.
It's impossible to update below the last post because you will not be able to trade this as the trolls will prevent you to make the good decision.
Any question just PM to me.
The rally is slowing and we got our first correction with a bit higher volume than in the low volume holiday season.
We have every chance now to have some kind of pullback. If we don't get it in the next few days - I mean if this channel is not breaking down I see a high chance that banks will try to pull price up above last year's high.
If we break above 1332 ( it means a break up from the uptrend channel) than I'm 100% sure we are going to test and break marginally above last year's high. (We might move in the channel for some time before an upbreak or downbreak, so get ready to have some pingpong.)
Why is it important? A break above last year's high (1358$) a perfect point to suck in all the goldbugs into a big long position as a "breakout".
But that breakout will be a false breakout ( a bull trap) and price should turn down immediately on the same day with a close below last year's yearly high.
So the plan is the following:
IF we break above 1332 I will cover all short position with starting a double long position for the ride to the break of 1358$. There will be a stop run and I will close all my longs where goldbugs are buying the breakout.With closing all the short covers we will be ready for riding the wave down in the original short position as goldbugs are stopping out in the drop.
SO if you have 10 LOT short right now you will need to buy 20 LOT long and close it at the break above 1358. I think the stop run will trigger a 8-10$ move so I suggest to close around 1363-1365. If you don't have the chance to watch it whole day just set a take profit at 1360$.
YOU NEED TO TAKE PROFIT on the longs because bulls will be punished hard on the way down.
If the channel break down there is nothing to do. We wait for the DCL. I will launch the sign when we need to take profit.