ridethepig | Gold Market Commentary 2020.01.31
Let's start by getting our bearings.
Firstly we are talking about the candidate... the swing in play. When there is a fleeing enemy in front and soft hands are protecting the resistance, it's important to understanding timing and when to advance and conquer.
The swing and initial target was completed at 1595.xx. Although the target has been achieved the coronavirus flows are unlocking the highs. In this chart you can see the previous swing which played out perfectly:
If the highs are taken again in this advance it will be a superb example of continuously demanding respect from our opponent.
What is the path of least resistance given the current driver? - The topside.
What is the more secure resistance or support in our board? - The support.
What is the cheapest price in play? - Given that WHO signalling for a national emergency and markets are not taking it well we can trade the momentum breakout towards 1620, 1630 and 1650 with additional stops below 1570.
The risk-off moves should continue with USDJPY a good benchmark for reference. I am holding shorts and getting itchy fingers to add at 109.4x as nothing suggest any reason to cover although we have month end flows in play which can make things tricky. To the downside we can target soft support at 108.4x and 108.2x while 109.7x remains strong resistance so keeping stops above. Well done all those who have been making a killing on this move in risk.
As usual thanks for keeping your support coming with likes and comments!
Firstly we are talking about the candidate... the swing in play. When there is a fleeing enemy in front and soft hands are protecting the resistance, it's important to understanding timing and when to advance and conquer.
The swing and initial target was completed at 1595.xx. Although the target has been achieved the coronavirus flows are unlocking the highs. In this chart you can see the previous swing which played out perfectly:
If the highs are taken again in this advance it will be a superb example of continuously demanding respect from our opponent.
What is the path of least resistance given the current driver? - The topside.
What is the more secure resistance or support in our board? - The support.
What is the cheapest price in play? - Given that WHO signalling for a national emergency and markets are not taking it well we can trade the momentum breakout towards 1620, 1630 and 1650 with additional stops below 1570.
The risk-off moves should continue with USDJPY a good benchmark for reference. I am holding shorts and getting itchy fingers to add at 109.4x as nothing suggest any reason to cover although we have month end flows in play which can make things tricky. To the downside we can target soft support at 108.4x and 108.2x while 109.7x remains strong resistance so keeping stops above. Well done all those who have been making a killing on this move in risk.
As usual thanks for keeping your support coming with likes and comments!
Comment:
Eyes on support for the open
Trade closed: target reached
