Gold - Wanna Take a Breath?!
Updated
Gold has been hit pretty hard by the rise of dollar since a couple of weeks.
It broke the ascending trendline it was in since november violently, without retesting it, falling like a rock all the way to the 1800s. But now could be the time for a little push up. It could either be a retracement if gold wants to print a downtrend, in what case we would go up to make a Lower low or even a double top. Or it could be a continuation of the uptrend. Both are possible, but for now, I'm gonna play the uptrend card.
The situation :
1) We're still officially in an uptrend
2) Price is at previous support
3) It pushed away from 1800ish level,
4) It's been approaching the support in a corrective manner, a falling wedge being a sign of a bullish reversal
5) It's rejecting the 50 - 60% Fib retracement level of the massive uptrend that happened between november and february
6) Pinbar on Daily, tweezers on H12, morning star on H8
This situation is pretty similar to the one with silver. It looks pretty scary to get into a long after such a sharp move down but, what goes down must go up at some point, and even though a lot of factors are pointing into the fact that gold is changing trend right now, technically, we're still in an uptrend, so price should obey to signals going that way.
I'm going into this trade because it follows my trading plan, this isn't a matter of belief. I'm not sure what the outcome will be, and it might hit SL, but, the thing I know is that it doesn't matter. The simple reason being that, I have enought evidences in favor of taking a position, and, if I respect this rule everytime, then my outocme will be positive on the long run, so, doesn't matter if I'm right or wrong on this one, it matters if I respect my trading plan, and trade according to it.
Plan the Trade, Trade the Plan!!!
This was the last analysis for this week, I'm wishing everybody sucess for this trading week, and don't hesitate to leave your comments and opinions about my ideas, any income is more than welcome!
Cheers everyone!
It broke the ascending trendline it was in since november violently, without retesting it, falling like a rock all the way to the 1800s. But now could be the time for a little push up. It could either be a retracement if gold wants to print a downtrend, in what case we would go up to make a Lower low or even a double top. Or it could be a continuation of the uptrend. Both are possible, but for now, I'm gonna play the uptrend card.
The situation :
1) We're still officially in an uptrend
2) Price is at previous support
3) It pushed away from 1800ish level,
4) It's been approaching the support in a corrective manner, a falling wedge being a sign of a bullish reversal
5) It's rejecting the 50 - 60% Fib retracement level of the massive uptrend that happened between november and february
6) Pinbar on Daily, tweezers on H12, morning star on H8
This situation is pretty similar to the one with silver. It looks pretty scary to get into a long after such a sharp move down but, what goes down must go up at some point, and even though a lot of factors are pointing into the fact that gold is changing trend right now, technically, we're still in an uptrend, so price should obey to signals going that way.
I'm going into this trade because it follows my trading plan, this isn't a matter of belief. I'm not sure what the outcome will be, and it might hit SL, but, the thing I know is that it doesn't matter. The simple reason being that, I have enought evidences in favor of taking a position, and, if I respect this rule everytime, then my outocme will be positive on the long run, so, doesn't matter if I'm right or wrong on this one, it matters if I respect my trading plan, and trade according to it.
Plan the Trade, Trade the Plan!!!
This was the last analysis for this week, I'm wishing everybody sucess for this trading week, and don't hesitate to leave your comments and opinions about my ideas, any income is more than welcome!
Cheers everyone!
Note
Wedge turning into a parallel descending channel? It's hard to go against dollar right now because it is so strong, but let's see how it unfoldsNote
Wedge is invalidated, Gols going for the 1800s
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