With the Bulls smashing the 1900 Piñata 🦄, I have 3 possible scenario's that may play out this coming week and how I will trade them.
Be Bull or Bear be Profitable! 🖖
- Scenario 1: Bulls has the momentum already and a continuation of the current trend launch Gold into the 2000 zone - A close above 1915 will signal a continuation of the Bull trend, I will treat 1915 as Support then as well as the 20 SMA as moving Support. Beware of false breakouts!
- Scenario 2: We have a similar consolidation as what we had when the price reached 1800, it was 14 days in a zigzag 2500 points range before the Bulls prevailed and the 1816 resistance where finally broken. This sideways channel has to be defined to be traded though, but for now 1890.40 and 1890 are Supports and 1906.60, 1915 Resistances.
- Scenario 3: A selloff ensue after market open or during the Euro session - A close below 1890 will signal bears may have gained market bias and I will treat 1890 as Resistance and follow the previous weeks 20 SMA bounces as Supports. Again beware of false breakouts!
Be Bull or Bear be Profitable! 🖖