Gold breaking out of wedge on daily Target 2000

Hello Fellow Trader!

Buyers absorb gold in the September sell down to 1,850 supported with a spike in volume but failing to drop further.

A slight pull back in gold this week to 50 EMA with low volume would be a good signal to look for bullish reversals on the 4 hour or 1- hour time frame.

Key Points:
- 21 EMA crosses below 50 EMA then reclaims and crosses above on bullish candle.
- Price holding above the 200 EMA
- Price holding above the 50 EMA
- RSI crossing above 50 mid-point
- Caution - Volume 20 day moving average did not break with bullish candle
- If target 1 is hit, move stop to break even and book portion of profit.

Key Levels:
Support – 1910, 1920, 21 EMA, 50 EMA, 200 EMA
Resistance – 2000, 2077

Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1910
Supporting Entry – 1921

Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing

The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.

IF: Price breaks below 1861 and/or violates 50 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.

Reward / Reward Targets:
Optimal Entry 1910 – Target 1 2000 = 2x Reward to Risk
Optimal Entry 1910 – Target 2 2077 = 3.5x Reward to Risk
Supporting Entry 1921 – Target 1 2000 = 1.3x Reward to Risk
Supporting Entry 1921 – Target 2 2077 = 2.5x Reward to Risk