Gold - Long

Bulls successfully defended a crucial swing level, and there appears to be a reversal observed in the spinning top candle on the daily. Possible next targets and take-profit zones in this chart where they are sure to meet resistance. Unfortunately, a lot of these movements may happen outside of regular trading hours in the U.S. (for GLD symbols), so trade carefully as invalidation of this will not permit instant stop-losses.

Note

Price hit crucial blue level and bounced down, but has not invalidated the play (possible bear trap at work). Downside rejected on two daily candles, I expect another attempt to close above the blue level to continue upside.

Note

Things are not looking great for team bull. I am still holding my breath for a breakout, but we might see a breakdown of EURUSD to 1.083, which would propel DXY to test 105 again (as it currently rejected the head and shoulders target). Unfortunately, this could mean gold and silver (and most of the market) will be red as they seize the opportunity to drive the price down. However, that could present as a buying opportunity as DXY is likely to bounce back to its current level to re-attempt the head and shoulders target (with the inverse effect for the market). A lot of speculation and assumptions here, but reflects the uncertainty and volatility of the movements we are sure to see in the next few hours. I am still rooting for bulls here, and tremendous effort holding the lines.

Note

Bulls have built a nice support at this range, and seems like they're ready to push forward. I'm expecting a close in the coming days/ hours at ~2370, and then ~2420. This forms a nice cup/ consolidation handle to move ~2550 onward.

Trade closed manually

I'm not comfortable with the set-up, DXY can potentially make a flip to the upside, and bring down the house of cards. Closing longs on metals. It's beginning to smell more like a bull trap/ distribution than a bear trap.

Trader-Daves

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