Retest of pivot points
As explained in my previous idea, the markets have been bullish due to fundamental statistics. With Biden possibly winning the election, Gold has become a safe haven with most investors retreating from the dollar index.
This stimulus though is not exempted from key levels that have been previously respected by the market. As a result, of our key area being broken, the role of it being a resistance has reversed and it has now turned to an area of support.
1. We can wait for the price to retest pivot point R2 and go long with our target at pivot point R3. In this scenario we need to be a bit more conservative with the amount of capital we risk, therefore you can put you stop loss just below R2 1933-1931 zone. If this zone breaks to the downside, go short with your stop loss just above R2 and target at R1
2. In the second scenario, we can wait for the price to bounce from the R3 zone before going short. As usual, wait for a reversal confirmation using Stoch and RSI. Make sure you put your stop loss above R3 to avoid blowing your account due to a bullish move as a result of the uncertainty based on the fundamental statistics
This stimulus though is not exempted from key levels that have been previously respected by the market. As a result, of our key area being broken, the role of it being a resistance has reversed and it has now turned to an area of support.
1. We can wait for the price to retest pivot point R2 and go long with our target at pivot point R3. In this scenario we need to be a bit more conservative with the amount of capital we risk, therefore you can put you stop loss just below R2 1933-1931 zone. If this zone breaks to the downside, go short with your stop loss just above R2 and target at R1
2. In the second scenario, we can wait for the price to bounce from the R3 zone before going short. As usual, wait for a reversal confirmation using Stoch and RSI. Make sure you put your stop loss above R3 to avoid blowing your account due to a bullish move as a result of the uncertainty based on the fundamental statistics
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.