This is only a trading capability - no recommendation !!! Next week i`ll confirm or change my opinion about this SetUp :) Buying/Selling or even only watching is always your own responsibility ... Best regards Aaron
Long gold at current price (1218) with a stoploss below 1200, which is Triangle base and mid-term support ( Gold has bounced back twice at this level. Also there are two price & RSI divergences as shown on the chat by blue and red line. Also lower low made yesterday is within Bollinger Band's lower band while the earlier low was outside it. It signals a turn back.
Red line is the Support on the daily time frame . Waiting for gold to either pullback to 1250 and continue downwards. Black dotted line is the support area on the 4 hour time frame . I have my Short order 5 pips below the Black dotted line Stop lose placed 5 pips above 1250 .
When in doubt take a look at the bigger picture! So far gold has retraced a bit more than 38.2% of the rally from $1,045 to $1,375. This is the minimum condition for a healthy pullback. If it can hold around the current level ($1,250-$1,270) it is showing some real strength and hidden bullish divergence. Looking at the slow stochastic it is extremely oversold and...
PRICE SHOULD TEST AGAIN THE 1309.47 FIB LEVEL. PLACE A BUY ORDER AT 1309.47. STOP LOSS AT 1296.04