Gold - Partial TP on shorts. Pull back is possible.
We have been short Gold since the trendbreak (1275). Please see previous trade idea and short setup on the link below. We have a few signals that suggest it may not be a bad idea to take partial profit on shorts.
Daily: Ichimoku setup is strategic bearish. Price, Tenkan, Kijun and Chikou all below the Kumo, all pointing down. Chikou is in open space. Future Kumo pointing down, no overshade on Price at all. The trend has been developing nicely, but we haven't had any pullback on daily chart since the 1275 break. DI- crossed below ADX. This is often first indication that the trend may pause for a while. Slow Stoch also has been in oversold territory.
Price is approaching a very important and strong key resistance at 1200, yesterday candle was a doji. From now we have to monitor price action, as my gut feeling tells me a pullback to firts support at 1240 is not impossible.
The question of course from where the pull back will occur if it occurs at all. From here, or from 1200?
4 Hrs: Yesterday we had a hammer candle at 1208-1210 level. ADX turns down again, and also in the last selling round it did not reach as high as on 14/Sept. Chikou Span is loosing open space a bit. We have a few valid trendlines supporting the bearish trend. Obviously the pull back, so some correction can take place in case one candle penetrates the closest downtrend line and closes above Kijun Sen too. The first level to watch is 1220.
Supports and thus the initial tgts of a correction are 1230 and 1240.
1 Hr: Some deterioration in bearish price action seen here. Price back to the Kumo, Chikou moved above Price candles. DMI lost bearishness, ADX dropped to neutral zone. The importance of 1220 is clearly visible here too, a brek above that would bring a valid bullish Kumo breakout. You can also notice the upper key levels as well: 1228-30 and 1238-40.
Note: Some USD correction is really looming here, also Stock indexes turning corrective bearish. I think some risk off proxy hedging can send Gold a bit higher in short term. But the main trend will remain bearish.
Daily: Ichimoku setup is strategic bearish. Price, Tenkan, Kijun and Chikou all below the Kumo, all pointing down. Chikou is in open space. Future Kumo pointing down, no overshade on Price at all. The trend has been developing nicely, but we haven't had any pullback on daily chart since the 1275 break. DI- crossed below ADX. This is often first indication that the trend may pause for a while. Slow Stoch also has been in oversold territory.
Price is approaching a very important and strong key resistance at 1200, yesterday candle was a doji. From now we have to monitor price action, as my gut feeling tells me a pullback to firts support at 1240 is not impossible.
The question of course from where the pull back will occur if it occurs at all. From here, or from 1200?
4 Hrs: Yesterday we had a hammer candle at 1208-1210 level. ADX turns down again, and also in the last selling round it did not reach as high as on 14/Sept. Chikou Span is loosing open space a bit. We have a few valid trendlines supporting the bearish trend. Obviously the pull back, so some correction can take place in case one candle penetrates the closest downtrend line and closes above Kijun Sen too. The first level to watch is 1220.
Supports and thus the initial tgts of a correction are 1230 and 1240.
1 Hr: Some deterioration in bearish price action seen here. Price back to the Kumo, Chikou moved above Price candles. DMI lost bearishness, ADX dropped to neutral zone. The importance of 1220 is clearly visible here too, a brek above that would bring a valid bullish Kumo breakout. You can also notice the upper key levels as well: 1228-30 and 1238-40.
Note: Some USD correction is really looming here, also Stock indexes turning corrective bearish. I think some risk off proxy hedging can send Gold a bit higher in short term. But the main trend will remain bearish.
