FX:XAUUSD Gold/U.S. Dollar
Gold had a nice run this year. From these levels I expect consolidation and some correction based on the followings. Daily: Slow turns down, is about to cross down (not yet valid) / 4 Hrs: Weak Tenkan/Kijun cross (happened above the cloud), Price is entering the cloud, Chikou span is coming below the price, Future Kumo started to point down, might cross down as well within a few days. All these together suggests the best days for bulls are over for some time, most likely gold will minimum move sideaway, or show correction down to 1295-1300 area. This shd be a good support. If it dips below, the next and the MOST important level is 1273. Can you tell me what is the problem with reading the charts between 1295 and 1273 (I mean in case we break below 1295)? .... The answer is simple: Daily time frame will be still , while 4 Hrs will give a setup. That's why I always use multiple time frame analyses. This is one of the biggest power of Kinko Hyo, that it is structured in a very simple way, and its indicators are somehow always in conjunction with each other on different time frames. I always consider the higher time frame as stronger and major. Until 1275 I doubt the daily would give any signals. Still you can try to short it as a counter trend trade based on a 4 Hrs breakout, but you have to be very smart when to enter the trade exactly, to be able to take a minimum 1:3 risk-reward ratio, with keeping in mind the really strong 1275 level as possible tgt . Anyway, according to my trading strategy and plan, at this point I do not see any reason to go short, but I had the signal for a partial profit taking on longs. In case suddenly comes back, re-enter longs at break of recent high.