Gold testing the trendline - Trading opportunity
Nice trading setup on the daily gold chart. Price has retested the weekly trendine and now we are getting some reversal evidence. Today we get a higher daily high which is my entry signal for this trade. These reversal signs are:
1) Price action and candle formations.
We got three daily dojis and then a hammer (sign of the end of the downtrend) + confirmation which is the higher daily high of today
2) Uptrendline is tested and holded
3) De mark indicator is giving me an entry point (green 2 trading above a green 1)
4) Bollinger bands. We tested the lower line and reversed
Entry 1295.8$
Stop loss 1281.4$
Target 1354$ (but this probably will change depending on the daily price action)
1) Price action and candle formations.
We got three daily dojis and then a hammer (sign of the end of the downtrend) + confirmation which is the higher daily high of today
2) Uptrendline is tested and holded
3) De mark indicator is giving me an entry point (green 2 trading above a green 1)
4) Bollinger bands. We tested the lower line and reversed
Entry 1295.8$
Stop loss 1281.4$
Target 1354$ (but this probably will change depending on the daily price action)
Trade active:
Trade is active with the yesteday's entry at 1295.8$. The first major resistance level in my eyes is the zone 1300-1310$ where is the previous major support level and some Fib retracements of 50% and 61.8% (H4 chart). Let's see how market will react if it reach that zone.
Comment:
Where are in profit and trade is still active. I wait to see how the price will react as approaching the resistance zone of 1300-1310.
Comment:
Price is testing the 50% Fib Retracement and the 200 day MA. I m closing 25% of the position here, and move my stop loss to breakeven for the rest 75%
Trade closed manually:
Trade is closed with small profit. 75% of the position closed to breakeven