XAUUSD:Playing the Descendig Channel

Oct 11, 2019

My previous trade set up was conservative with setting my entry at $1,535. I went back to the drawing board and I have come up with this idea. This is a pure technical set up and the fundamentals could change the outcome, whether it be favorable or unfavorable. After the pair broke, retested, and failed to close above its upward trendline, price has now found itself in a descending channel. As can seen on the chart, price tested the upper TL and got a hard reject as sellers were lined up at $1,517. Now it seems like price is heading for the lower TL at around $1446. I'm going to play this set up for now, so here's the plan:

Entered Sell At the Market: $1,493.27
Stop Loss: Just slightly above this week's high
TP1: $1,446
TP2: $1,380 (That's if price broke out the channel)

Remember the overall structure on Daily and Weekly is Upward. There's a slight shift as seen by the descending channel. So beware!

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Good luck and happy trading!

Oct 11, 2019

Trade active

Entered at the market: $1,493.27

Oct 23, 2019

Note

Adjusted SL to break even just in case the tide turns. I’ll continue to monitor the fundamentals.

Oct 25, 2019

Trade closed: stop reached

Trade closed at break even. Bulls protected the $1480’s-$1490’s range. As you can see price broke out to the topside. But the bullish run didn’t last too long as sellers stepped back into the market at $1518 after the POTUS toted that the China trade talks are going extremely well. I’ll be looking for set up on this pair for the next trade week. Stay tuned!