Gold--Enter the Dragon Channel below 1342$

01:00 Hrs--IST--10th Aug 2016---Gold Currently trading at 1346$--very close to 38.2% retracement of the fall from 1371.5 to 1335 $--Wave -1..........(20 $--Trade)

Wave 2--Bounce was expected from 1335$ to 1348--1352$ --which is also done (10-15$ --Trade)

This Wave 2- could be partial wave --I mean to say --I will take this as Wave-W....so........

Trading Strategy-1: If Gold enters dragon channel & sustains below 1342$...we can look for 1336--1337 $ (6$--Trade)

Trading Strategy-2: Flip your position with stop slightly below 1335$ --if you see gold bouncing back from 1336--1337 $ Range...In That case ...Going Beyond 1348.5$ -Recent High...Can Travel till 1357$ --where it will complete 61.8% of the fall from 1371.5--to 1335$....

Alternate Scenario---Trading Strategy-3---Let say Gold starts falling below 1342$ & comes to 1336-1337$ Range --where one should book profits & wait for fresh shorts below 1335$ low gets broken--In that case Gold Fall will be severe....

Regards,
Abhishek H.Singh,CMT

Trade active:

11:55 Hrs--IST--10th Aug 2016----Gold Below 1342$ & When it enters the dragon channel....Never Happened ...Continued further upside...now -It has retraced 61.8% of the fall from 1371.5 to 1335$---Possibly, One should keep an eye open for the downside movement...which I will post...Regards, Abhishek