Daily: Indicators are still bearish. Price action of last two days was enough for some correction from the breakdown lows, to retest Tenkan Sen and the broken trendline. If it closes ard or below 1270, the inside hammer-like candle will rather suggest the continuation of the bearish move. I do not say it can not spike any higher, but clearly the Ichimoku setup is bearish. Now also Chikou Span is below the cloud and it has an open space ahead.
4 hrs: Pull back to Kijun Sen and to previous horizontal support, which now acts as resistance. Slow Stoch turning down. If you have not yet enterred shorts, it is time to slowly open the position. Since we never know what mkt does next (it can even spike from here), add to the first shorts only on the next leg down (below 1263), never average "loosers". You can never know if some desperate bulls may try to lift it back above 1280 again.
Note: a break back above 1300 would invalidate the short Gold idea.
Comments
Kumowizard
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Watch price action now! Stoxx grinding lower, USD correction is looming, yesterday daily candle was a doji. Maybe it is time to take profit on shorts now.
Kumowizard
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Gold started to loose short term bearish momentum on 4 Hrs chart. ADX is decreasing now, Chikou hit price candles.. We also have a Slow Stoch bullish cross on daily. The major trend is still bearish, but looking at the lower time frame, if we have a 4 Hrs close above Kijun Sen (above 1240), I would close the short position.
Kumowizard
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This trade has worked slowly and was a bit annoying sometimes, but it has been working well so far. No reason to change the view, of course any USD correction can cause spikes in Gold price too. The only thing we should do now is to lower or Stop Loss to ard 1277-1280.
Some profit taking recommended in case we see some daily reversal candle form with volume decreasing.