GOLD : A LOT OF INDECISION
We are bullish on GOLD for long term and expecting a deeper rotation back to the old $1440 - $1450 support area where we expect GOLD prices to be supported by buyers.
For now our bias is turned bearish short term after the formation of LH,LL pattern on the daily and prices has seen strong selling pressure recently after we have had two Sell Setups on the weekly on two different occasions which are still active.
1. A tailed bar formed from the key long term weekly resistance : $1555
2. A pin bar formed from the $1525 key resistance level rejecting the higher prices and false breaking the same level.
Now , from the last few days we have had multiple inside bar Setup which shows a lots of indecision, but we can get some clues here as the multiple inside bar setup has formed after a well formed tailed bar rejecting the third hit on the downwards daily trend line.
So, below given are the factors of confluence supporting our Sell call in GOLD :
1. Weekly well formed Sell Setups on two occasions formed from the key long term resistance levels : $1555 & $1525
2. A confirm break and close under the weekly upwards trend line.
3. Daily LH,LL pattern activated
4. A tailed bar rejecting the daily downwards trend line's third hit.
5. Multiple inside bar Setup on the daily right after the tailed bar rejecting the downwards trend line.
6: 1:2 R:R available
NOTE : We really can't use the EMA's as , price has been consolidating recently and EMA's are no good in consolidating markets.
So , we are taking shorts in GOLD by placing our Stops above the high of the Mother/Outside bar of the recent multiple inside bar pattern and will target the $1440 area.
Below is the trade we have taken :
Selling GOLD @ $1488 (Fill Price)
Stop @ $1505
Take profit @ $1553
$Risked : $17
$ targeted : $35
Trade is active
We are bullish on GOLD for long term and expecting a deeper rotation back to the old $1440 - $1450 support area where we expect GOLD prices to be supported by buyers.
For now our bias is turned bearish short term after the formation of LH,LL pattern on the daily and prices has seen strong selling pressure recently after we have had two Sell Setups on the weekly on two different occasions which are still active.
1. A tailed bar formed from the key long term weekly resistance : $1555
2. A pin bar formed from the $1525 key resistance level rejecting the higher prices and false breaking the same level.
Now , from the last few days we have had multiple inside bar Setup which shows a lots of indecision, but we can get some clues here as the multiple inside bar setup has formed after a well formed tailed bar rejecting the third hit on the downwards daily trend line.
So, below given are the factors of confluence supporting our Sell call in GOLD :
1. Weekly well formed Sell Setups on two occasions formed from the key long term resistance levels : $1555 & $1525
2. A confirm break and close under the weekly upwards trend line.
3. Daily LH,LL pattern activated
4. A tailed bar rejecting the daily downwards trend line's third hit.
5. Multiple inside bar Setup on the daily right after the tailed bar rejecting the downwards trend line.
6: 1:2 R:R available
NOTE : We really can't use the EMA's as , price has been consolidating recently and EMA's are no good in consolidating markets.
So , we are taking shorts in GOLD by placing our Stops above the high of the Mother/Outside bar of the recent multiple inside bar pattern and will target the $1440 area.
Below is the trade we have taken :
Selling GOLD @ $1488 (Fill Price)
Stop @ $1505
Take profit @ $1553
$Risked : $17
$ targeted : $35
Trade is active
Sorry there was a typo earlier!!!