Time for the next big move in Gold?
By Orlando Gutierrez
Head of Trading
Gold has been trading inside of a range for the better part of a month, since it broke above 1660 and I have been looking for the opportunity to buy for a break above 1760. If you remember my buy stops at 1680 never got filled.
If we look at the chart after the breakout of 1660 Gold started to trade inside of a triangle formation and broke with it when it broke with the previous high at around 1723 before reaching the tp of this range at 1760.
I should point out that this range is comprised of 2 MASSIVE levels on the weekly, 1675 - 1760.
Eventually when price hit the top of this range sellers (and profit taking by buyers) slammed price down and now we have reached the broken triangle again, a retest of it whilst Gold trades inside a wedge (orange formation) which points at an explosive continuation to the upside.
This level is the 1.618% retracement of the last leg up and the 61.8% retracement of the entire range. A buy here would be too aggressive for me since the true pool of liquidity is around the 1700 level.
In any case I will be very patient for this entry and probably will not miss it. If this scenario plays out this could yield at least a 1:4 RRR to first targets.
All my subscribers will get my exact entry levels, stop losses, targets and trade manaement
The interpretation and use of the trading signals and market analysis generated by Forex Trading Essentials, its authors, traders and analysts is at the sole discretion of the customer, subscriber, member or trader. Forex Trading Essentials and its owners shall not be responsible for any claims in losses directly consequential of any trading activity. The content shared in this discord server is for educational purposes only.
© Forex Trading Essentials 2020. All Rights Reserved