How do you know if a strategy is working in trading? Of course, when price paint the right picture for you. Now when Gold is down almost $90 from our short entry ( you can check the rationale behind shorting Gold here ), we can comfortably say that the strategy of shorting Gold from each big resistance is working. When we outlined this strategy there were many questions. Besides going against the idea of big guns in the industry always has that fear factor. When someone like Stanley Druckenmiller likes Gold long, there must be something. But well, as we mentioned earlier, if you don't have few hundred million to bet and time horizon ( a.k.a. staying power) like him, then you better resort to the short term strategies. No macro stuff, just basic technical analysis. Now what? Well, strategy remains the same ! Watch these levels and wait for the shorts near - 1260 / 1300 and so on. Also for short term long trade we will be looking for support levels near 1200 / 1180 and 1160.
Upon a bounce from the support levels you mentioned. Do you think gold can make another leg higher? Or will it be a short term bounce? Advice is appreciated, thank you!
BombayBulls
⋅
Next 'Big Move' will be dictated by Fed rate meeting outcome next month. Which could be in either direction - sub 1000 or above 1300. Until that time, Gold is going to trade between the goal posts - 1100 & 1300. I don't know how high the bounce could be ( usually to the next resistance level is expected ) but it can give us enough to get few bucks !
4thewin
⋅
thank you. is this a corrective wave of the larger up trend or the start of a new impulse wave 1?
BombayBulls
⋅
You are welcome. I am sorry but I am not an expert in wave structures and don't trade based on that either, so don't have the answer for your question in wave terms. Whether it goes up from here or down, I really don't know. So let's just find good support and resistance levels to trade against and rest will take care of itself !