After reaching near all-time high at $2070, gold has felt about $120 in just a couple of days. It is a fast downward correction which has shaked out many weak hands. However the daily trend remains bullish overall.
Gold is currently back to the trend line where it started its bull-run from $1780. Unless this trend line is broken, it should provide strong support for gold.
Note that after making the first high at $1975, gold retraced roughly 61.8% back to the trend line before resuming its uptrend.
After making the second high at $2070, gold now has retraced 61.8% to 1950 and back to the trend line again.
The downward correction looks like a falling wedge pattern which usually leads to quite a bullish reversal when price gets really compressed to the end of the wedge.
Our strategy:
Buy-area should be around $1940-$1950 with stop loss under $1920
First target $2000. Second target $2050-$2075.
Gold is currently back to the trend line where it started its bull-run from $1780. Unless this trend line is broken, it should provide strong support for gold.
Note that after making the first high at $1975, gold retraced roughly 61.8% back to the trend line before resuming its uptrend.
After making the second high at $2070, gold now has retraced 61.8% to 1950 and back to the trend line again.
The downward correction looks like a falling wedge pattern which usually leads to quite a bullish reversal when price gets really compressed to the end of the wedge.
Our strategy:
Buy-area should be around $1940-$1950 with stop loss under $1920
First target $2000. Second target $2050-$2075.
Transaction en cours:
Added half contract at 1950.
Transaction en cours:
Added another half contract at 1930.
Now got a full contract at an avergae 1940.
All stop loss under 1920.
Now got a full contract at an avergae 1940.
All stop loss under 1920.
Commentaire:
NO SL Yet. Still holding on
Trade fermée: ordre d’arrêt atteint:
Stopped out due to FOMC
After moving SL, the risk/reward ratios is still 1:2 minimum with the potential to be 1:4