In this idea I will explain how to trade gold, now that we have information directly after the market has opened.
Now that the gold market is open again, we can immediately see the bearish trend of the gold price. The price went down about 1% and reached $1720 within only a few hours.
This is an indication to me that the recent uptrend of gold will be over for a while, and that we're looking for a small consolidation.
I charted a scenario here that can monetize this behavior, by using the newly found horizontal resistance area.
If we look at the previous gold idea here with the symmetrical triangle
We can see that the price moved according to the bearish scenario, but didn't go down all the way to the support zone. I suggested to cancel that trade as the technicals are no longer valid, and now suggest to move to the current set-up where with a bearish signal, you should try to get a buy in as high as possible, to maximize your risk reward.
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- Trading Guru
-------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!
Trade closed: target reached
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What a beautiful trade! We can see that the price followed the prediction very closely, and the resistance level of $1740 turned out to be an important one.
Congrats to everyone who participated with me in this trade.
Comment
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This idea will be continued here with a nice S/R Flip long opportunity: