XAUUSD/GLD: POSSIBLE LONG/SHORT ENTRIES; LONG ENTRY NOW AT 1258
After having tested the 1300 mark on May 2nd, gold has been short-term trundling down in a 25 dollar wide channel within a longer-term upward sloping channel (the two intersect at around 1250).
SHORTS: Risk reward militates in favor of waiting until a test of the upper bound of the downward sloping channel/long-term Fib resistance at 1283 to short, targeting the lower bound of the upward sloping channel at 1250, as downside potential is somewhat limited here.
LONGS: Although I would ideally exercise patience and wait for a test of the lower bound of the upward sloping channel at about 1250, targeting either the upward bound of the downward sloping channel currently around 1275 or long-term Fib resistance at 1283 (shown in red), I can see an argument for pulling the trigger on a long right now, given short term horizontal resistance at 1258, again targeting 1275 or 1283 ... .
SHORTS: Risk reward militates in favor of waiting until a test of the upper bound of the downward sloping channel/long-term Fib resistance at 1283 to short, targeting the lower bound of the upward sloping channel at 1250, as downside potential is somewhat limited here.
LONGS: Although I would ideally exercise patience and wait for a test of the lower bound of the upward sloping channel at about 1250, targeting either the upward bound of the downward sloping channel currently around 1275 or long-term Fib resistance at 1283 (shown in red), I can see an argument for pulling the trigger on a long right now, given short term horizontal resistance at 1258, again targeting 1275 or 1283 ... .
Comment:
Well, broke that short-term support at 1258 ... . Watching 1250.
Comment:
Mmm. Break of the channel -- looks like I need to reassess .. .