Here I have found an opportunity on XAU/USD with two possible scenarios.
Dependent on todays (05/07/2017) Daily candle close on Gold (XAU/USD); I have found two seperate possibilities - either option still gives me the same bias on Gold, which is a short to $1200 per Oz.
If we get a Daily candle close as a shooting star, I will automatically enter a Gold short, with stops above 20-30pips above the high of the shooting star. Targets would be just above $1200 (maybe $1201.00). The reasoning behind this is that I think we have a lot of bearish momentum with Gold at the moment, a weak daily close could be enough to push gold lower without a pullback.
However if we see a green bodied close on the daily candle, I still believe we are in consolidation and a pullback (up to retest the trendline we recently broke, which matches with the 61.8% Fibonacci area) could well be on the cards. So if we do see a strong daily close, I will await a pullback to these levels before looking for short opportunities.
I have clearly marked both possibilities on the chart (see the arrows).
I shall update later today, let's see how this plays out.
We did not get a clear shooting star closure on Gold, so I did not enter in short. (Also we have had Non Farm Payroll today 7/7/2017 which is another reason I did not enter).
However we did form a nice consolidation range which we were trading in for the past few days (I drew a box around this area on a hourly chart).
We have just made a strong break below this consolidation area, after NFP news results.
I know I maybe shouldn't enter in a pair right before the weekend, however bullish NFP figures give me an added confluence to my short bias.
However we did form a nice consolidation range which we were trading in for the past few days (I drew a box around this area on a hourly chart).
We have just made a strong break below this consolidation area, after NFP news results.
I know I maybe shouldn't enter in a pair right before the weekend, however bullish NFP figures give me an added confluence to my short bias.
I am short $1214.70
Stop Loss: $1219.00
Target $1201.00
Let's see how this plays out!