XAUUSD - Gold Daily
Simple Trading - Cup and Handle pattern
Gold has made a break from its bullish momentum and is now finding support at 2380. Expect gold to continue to reject the previous low and continue to make higher lows. If the Cup and Handle pattern plays out correctly, 2380 should be the lowest gold should go before reaching TP1.
How to trade the pattern:
Entry 1 is the 50% fib retracement from the previous impulse. In our case, gold has dropped perfectly to the 50% fib
Entry 2 is the breakout.
BULLS:
Pay attention to the previous week's candle close. the high of last week was 2480. We are currently in a 1000pips range or 100 points. If gold fails to remain bullish over the next couple of days gold may surpass the previous high and reach target 1.
BEARS:
we can see the market may consolidate shown in ZOOM 4HR. If strong sell pressure keeps gold under the next daily FVG which is around 2445-2451, we may look to take some profits. if gold remains bearish and breaks below 2380 we look to change our basis and look for more sells in the short term.
*These are just my thoughts, not financial advice.
Gold has made a break from its bullish momentum and is now finding support at 2380. Expect gold to continue to reject the previous low and continue to make higher lows. If the Cup and Handle pattern plays out correctly, 2380 should be the lowest gold should go before reaching TP1.
How to trade the pattern:
Entry 1 is the 50% fib retracement from the previous impulse. In our case, gold has dropped perfectly to the 50% fib
Entry 2 is the breakout.
BULLS:
Pay attention to the previous week's candle close. the high of last week was 2480. We are currently in a 1000pips range or 100 points. If gold fails to remain bullish over the next couple of days gold may surpass the previous high and reach target 1.
BEARS:
we can see the market may consolidate shown in ZOOM 4HR. If strong sell pressure keeps gold under the next daily FVG which is around 2445-2451, we may look to take some profits. if gold remains bearish and breaks below 2380 we look to change our basis and look for more sells in the short term.
*These are just my thoughts, not financial advice.
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