So, lets prepare ourselves with many possibilities that can happen and some zones to lookout for as now it’s much clearer with many key levels to monitor.
What are some possibilities that can happen next ahead.
1. Purple path. Gold in the higher timeframe is still valid as uptrend as since in the trendline drawn this is the 3rd touch and it shown a rejection however its not a significant rejection like it did on Thursday when it touches 3057 bounces up back 800pips in just 2hr. So, if gold is still confirming respecting its uptrend of weekly and daily. What we need to look for is a price action to break above 3057 to reach to the last support becomes resistance of 3095-3105. When the pullback happens to the 3057 and confirm its as support hence gold is still valid buy for long as the uncertainty base on fundamental with the trade war happening around the world where else can you place your safest investment to be than gold? So lots question to fight this fear when we going to trade next week to fight against why the reason then on Thursday and Friday there was a big dump? A logic way to answer is 1 a panic selling by many investors to cash out on the high and replace a new order lower. 2 A lot of sudden movement that makes gold price fluctuate between 2 ATH area. 3 possibility Price correction in place to go higher.
2. Red path, could gold be making a change of trend? Yes, possible however temporarily. Even its going to make long sell season like it ever does from 2011-2015 it will not make a drastic sell only there will always be pullback at least close to the ATH hence first target it need to break is the strong support of 2855 and the ranging roadblock area of 2890-2922. If those 2 areas are managed to be reached in a couple of weeks’ time. Hence there’s a strong possibility for a long sell happening however it should swipe 3000s area first before a long sell season.
3. Blue path. Gold potentially collects weekly RBS before continuation to climb further. A good signal if a swap happens in daily in the area of 2950. Then we know a buy long is still high as mentioned in 1st path.
4. Green path. A potential that gold making a bigger ranging between 2900- 3100 before making any decision on future path.
So, what the trading plan that I want to look for? I am not going to swing trade for next week as market uncertainty is going to be high and handling my emotion is way much important then chasing the market or hoping it to give me more then I target.
There zones that I’ve marked and I intend to only risk 0.5-1% or 30pip SL max per trade with a clear confirmation of sell or buy and I will take profit of target 2-3% per trade or 50-100pips with a trail SL of 50pips at B.E and close 75% trade the rest to 100pips close all. Limit to max 3 trade if all win and stop trading if I lose 2 losing trading that day vice versa. With big movements in the market, I could not allow my acct to be expose to more risk and emotion to be unstable as at the moment market is not making some sense until its stabilise then I can allow a little more exposure.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.