In this article, we want to give you a “heads up” on Gold.
The instrument is retesting the broken downside channel 1210 level. The retest and pullback is coming after the strong break below the important 1235 downside resistance levels and almost $60 downside swing.
We are seeing the bearish shadow candle formation showing on the daily chart but we need to wait for a daily close to confirm this. This price action is giving to all traders a good short trade entry opportunity, as long as the pair is holding below 1210 level.
In this kind of situations, waiting is not a good option. Traders should wait for a late NY session to enter the short trade. The risk by placing a stop loss above 1210 level is almost $20 but the possible reward could be much greater even more than $40 per unit if we get a significant break below an important 1160 level. Profit target should be no higher than the 1160 level.
By using our top-down trading technical analysis we have identified the key levels which will be triggers for the entry and exit, based on the present market conditions of the instrument.
Happy trading! (click on the chart to enlarge it)
Through time we have developed a very respectable trading strategy which defines Entry, Stop loss and Take Profit levels with high accuracy and allows you to make position risk free. We are publishing daily and weekly analysis and 5-10 trade alerts per week directly on your mobile device via Private twitter feed and Private Telegram group!
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