justatrader
Short

Gold - Long term short position (Monthly Charts)

FX:XAUUSD   Gold / U.S. Dollar
651 5 12
Break of a major multi year trend line with price action now heading to test the break out level near 1240 - 1250 levels.
RSI divergence points to a decline with T1, T2 being potential areas of bounce (book partial profits here).
T3 - Divergence target at 725.
Bearish pennant formation near trend line .
Could take a year or maybe into 2016 for targets to be completed.
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Trade Plan:
Switch to Weekly charts for possible bearish candlestick patterns near 1240-1250 levels with 3 positions, targeting T1, T2 and T3 respectively.
Stops near 1388 - 1440.

Alternate view:
Based on the bullish divergence of higher low of RSI , if price breaks above 1240/1250, it is sure to retest this level for support (making it a sound plan to exit shorts on the bounce.
Interesting long-term perspective. Thank you.
Reply
jangseohee dmespolet
very soon we will know whether there is support at purple war zone
Reply
IvanLabrie PRO jangseohee
Nice, I think gold might surprise many people soon...
+1 Reply
Indeed!! Or rather the US Dollar might in fact.
Reply
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