Gold - falling wedge + bears failed to make new low
Gold has made a 4hr bullish engulfing candle in the previous candle. It is currently in a falling wedge and has already bounced at the bottom of the falling wedge. The bears have failed to make a new low. Good to buy if gold can hold above $1240.05. Do not enter the trade if price does not hold, with bearish formations such as bearish engulfing candle, bearish pin bar…etc.
If you are a conservative trader, you can wait for gold to break above the falling wedge and re-test it as support and then buy.
Two take profits are marked on the chart:
1:1.5 r/r ratio for TP1 (Take 50% profits & move SL to break-even)
1:4 r/r ratio for TP2 (Take 40% profits or move SL to just below an important support level)
1:10.3 r/r ratio for final target @ $1281
Please keep in mind that gold is still bearish on a larger time frame so this trade will be a counter trend trade. Thus, I wouldn’t recommend you to enter this trade if you are a trend trader.
Don't forget to give it a "LIKE" :) Much appreciated.
Taiwan Bear
*********************************************************************************
This analysis is for informational purpose only. Please keep in mind there is a huge risk in trading. Don’t expect you can make profits from every trade. 50% winning ratio is considered as good ratio as long as the risk/reward is good.
If you are a conservative trader, you can wait for gold to break above the falling wedge and re-test it as support and then buy.
Two take profits are marked on the chart:
1:1.5 r/r ratio for TP1 (Take 50% profits & move SL to break-even)
1:4 r/r ratio for TP2 (Take 40% profits or move SL to just below an important support level)
1:10.3 r/r ratio for final target @ $1281
Please keep in mind that gold is still bearish on a larger time frame so this trade will be a counter trend trade. Thus, I wouldn’t recommend you to enter this trade if you are a trend trader.
Don't forget to give it a "LIKE" :) Much appreciated.
Taiwan Bear
*********************************************************************************
This analysis is for informational purpose only. Please keep in mind there is a huge risk in trading. Don’t expect you can make profits from every trade. 50% winning ratio is considered as good ratio as long as the risk/reward is good.
Comment:
Daily chart:
Comment:
Testing the top of the wedge now:
Comment:
Back to square one. Stick to the plan if you have entered.
Remember, this is a counter trend trade with good r/r ratio.
Remember, this is a counter trend trade with good r/r ratio.
Trade closed: stop reached