After breaking out of the monthly downtrend( market by red trend line ) in Aug of 2019 Gold has returned 25%
Is possible that Gold will find resistance on old ATH(all time high) and resistance of channel 2 around $1900
Upon a rejection from this resistance a short position might be profitable untill $1500( conservatively)
SInce Gold is a horrible hedge against market gyrations and possible sell offs, Gold falling beyond the 50% retracement ( if it comes down ) could indicate a further decline in equities.
As long as the 50MA holds on the monthly chart , we could esipulate a possible cup and handle formation on the monthly chart with resistance of channel 2 acting as the handle( that's a chart for another day )
Although we still believe that GOLD has around 8% upside a bullish trade here doesn't justify the risk.
So for now we will wait untill $1900 is rejected and tested ( at least on the weekly chart) before we start shorting it.
On our chart we have $1500 as a target area for around 2022..but with elevated volatility $1500 could come in much sooner than expected( if it does at all)
Our main objective is to short Gold to $1500 but stay rather conservative and only take short trades from resistance of channel 2 to limit any potential downside on our trade.
So, as the days passes the resistance of channels will change to the downside and a trader must adjust accordingly, be aware and flexible on his approach.
Although these numbers may or may not come to fruition , please keep in mind these are perceived support and resistance based on our strategy and may differ from other traders.
Have fun and trade with care.
R.I.P
Is possible that Gold will find resistance on old ATH(all time high) and resistance of channel 2 around $1900
Upon a rejection from this resistance a short position might be profitable untill $1500( conservatively)
SInce Gold is a horrible hedge against market gyrations and possible sell offs, Gold falling beyond the 50% retracement ( if it comes down ) could indicate a further decline in equities.
As long as the 50MA holds on the monthly chart , we could esipulate a possible cup and handle formation on the monthly chart with resistance of channel 2 acting as the handle( that's a chart for another day )
Although we still believe that GOLD has around 8% upside a bullish trade here doesn't justify the risk.
So for now we will wait untill $1900 is rejected and tested ( at least on the weekly chart) before we start shorting it.
On our chart we have $1500 as a target area for around 2022..but with elevated volatility $1500 could come in much sooner than expected( if it does at all)
Our main objective is to short Gold to $1500 but stay rather conservative and only take short trades from resistance of channel 2 to limit any potential downside on our trade.
So, as the days passes the resistance of channels will change to the downside and a trader must adjust accordingly, be aware and flexible on his approach.
Although these numbers may or may not come to fruition , please keep in mind these are perceived support and resistance based on our strategy and may differ from other traders.
Have fun and trade with care.
R.I.P