Kumowizard
Long

GOLD - Swing trade buying opportunity with good risk-reward

FX:XAUUSD   Gold/U.S. Dollar
87 2 1
Certainly, gold             had a very nice run this year, and of course it has become overbought. We saw a correction from the tops, but ard 1326-1330 there is a good support level (recent uptrend + horizontal on Daily chart ). You could ask me why I would like to go long here, when on the 4 Hrs trading time fram the price is clearly below the Kumo, and also other Ichimoku components look bearish . Well that is true, but the higher time frame is still very much bullish , and here is the trend line very well visible on 4 Hrs as well + Stochastic is preatty much oversold. It is often a big mistake for those who trade on Kumo breakouts, that they don't wait until the price penetrates the previus Key Support/Resistence! That is always essential to validate a change in the direction of the trend! This Key support is here ard 1325-1330. Strategy is go long with stop 1320             , tgt             1355 - 1360.
I am in this position, but depending on the open price, I recommend to move stop up to the opening level from the 1319-1320 initial stop.
Now I follow this trade on my 15 mins, Ichimoku setup. In case it breaks back below the Cloud (currently Senkou B - cloud bottom is at 1331, I would rather close it, since the higher 4 Hrs time frame is bearish, and the original idea was only a contra trade. If px action is bad, just forget it and get out at 0 P/L.
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The trade is closed out on a trailing stop at 1333,50. Counter long recommendation is not valid any more! Gold will likely be under more bearish pressure.
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