Gold has been moving in an uptrend for several days, for the entire month of Feb 2022 to be exact. Current price movement suggests that Gold might be over extended. We have started seeing signs of potential price exhaustion by the formation of a key level. We have also spotted other two signs that Gold might be preparing for a short term correction which include a bearish pin bar on the daily time frame as well as trendline breakout.
We will be waiting for a breakout of the key level around 1878.5*. This will signal a change in market structure. We will than monitor price action for be on the lookout for a good entry. Risk reward for the current trade currently stands at 3.5 to 1 according to our trading plan.
Note
Trade is still valid. We are waiting price to behave accordingly before we enter again.
Order cancelled
We have decided to cancel the trade and wait for another sign of price exhaustion. As price stands, gold is still extremely bullish.
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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.