GOLD - Daily Timeframe Overview - Buy Opportunities
Up until recent times, for Gold
XAUUSD
we were considering two possible scenarios: the completion of a big ABC primary pattern (in yellow) which took the big movement from the yearly 1047 low as the first impulse to the upside and the retracement to the 1120 area as it's A leg. The B leg would have then been a complex B wave with consequent new highs shaping up in the correction. This analysis is still possible in theory, but the problem with it is that the latest structure price has been forming within that complex B wave indicate that the pattern is not acting like a correction anymore as there are no more clear indications of downward impulses to signal the beginning of the "C" leg: price just keeps correcting up there at the top, on the daily, which to us means that it is just building momentum for more upside. Of course, we could be wrong, but what matters to us at this moment is that now we are precisely at a turning point: either the price breaks the trend to the upside (pink), or it breaks the trend to the downside (blue), which to us seems more and more unlikely as time passes. Whichever way, we can trade it with profit - we just need to be ready for the movement. As it stands of today, we have buy stop orders in place above the upper trend: if the price breaks, our orders will be filled and we will keep our long positions until the previous high around the 1367 area first, and then we will hold our positions if the structure tells us it is convenient to do so.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
XAUUSD
we were considering two possible scenarios: the completion of a big ABC primary pattern (in yellow) which took the big movement from the yearly 1047 low as the first impulse to the upside and the retracement to the 1120 area as it's A leg. The B leg would have then been a complex B wave with consequent new highs shaping up in the correction. This analysis is still possible in theory, but the problem with it is that the latest structure price has been forming within that complex B wave indicate that the pattern is not acting like a correction anymore as there are no more clear indications of downward impulses to signal the beginning of the "C" leg: price just keeps correcting up there at the top, on the daily, which to us means that it is just building momentum for more upside. Of course, we could be wrong, but what matters to us at this moment is that now we are precisely at a turning point: either the price breaks the trend to the upside (pink), or it breaks the trend to the downside (blue), which to us seems more and more unlikely as time passes. Whichever way, we can trade it with profit - we just need to be ready for the movement. As it stands of today, we have buy stop orders in place above the upper trend: if the price breaks, our orders will be filled and we will keep our long positions until the previous high around the 1367 area first, and then we will hold our positions if the structure tells us it is convenient to do so. If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.