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. ----------------------------------------------- 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.
Comments
jangseohee
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IvanLabrie
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Nice, I think gold might surprise many people soon...
justatrader
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Indeed!! Or rather the US Dollar might in fact.
dmespolet
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Interesting long-term perspective. Thank you.
jangseohee
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very soon we will know whether there is support at purple war zone