I can't help but notice the huge potential H&S pattern that has been forming on the pair ever since it found resistance at the $1556 handle. Friday's bull trap that saw price ran up to $1518 only to get a quick rejection of that area lets me know that sellers aren't ready to roll over without a fight. The rule of thumb is to wait for the confirmation bear candle after the formation. If we get a bear candle on Monday's trade day we would definitely get the confirmation that $1518 is indeed the reversal point. I have already started to build out a short position at $1,505 and would definitely add another position if I see $1,507-1510. My stop loss is somewhat generous at $1525. On the fundamentals front, the FOMC minutes is due on Wednesday and the market has already priced in a rate cut. The USA/China trade talks are going well so we might hear a more hawkish tone from the Federal Reserves members. If this scenario plays out, we will get the volatility to push the pair down. As always, it is hard to predict what we get on the economic front on a day to day basis which can change the likelihood of the technical set up playing out. Here's My Plan- Short Gold at $1,505.04. Add to position if I see $1507.4 or better. Stop loss is 200 Pips Target 1: $1446 and Target 2: $1335 Be sure to follow me for more set ups. Comment your thoughts below. Share with a friend. Give a thumbs up (LIKE) to show support. Good Luck and Happy Trading!
Trade active
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This trade was entered on 10.25.19 at $1505.04
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Added another position at $1507
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I am thinking off adding another position at $1496. Will update if price gets to that point.
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Didn’t quite get $1496. Added to my position at $1495 & $1489. I’m done loading. Waiting on TP levels. Remember to follow, like, comment, & share. Thank you.
Trade closed: stop reached
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Was able to bank on positions at 1507, 1505, and 1495. Took a small loss on the position at 1489. Staying flat until after USD data.