Long Gold with caution
Updated
On 20th Aug I went long at 1185 with a stop at 1170 targeting 1210. Since then I have revised the stop to 1186 to lock in any profit since the trend is up.
The reason why I am trailing the stop is because I am still concerned about the Weekly chart for Gold being far below the 20 MA. Additionally, there only appears to be a 1 wave correction on this weekly chart. At best it is a 3 wave.
Whilst it is possible we are at the start of a bull run with only a 1 wave down correction, I think the risks are still there. More likely is this is a protracted weekly wave up before the weekly chart trends down again.
So proceed long with caution and look for any bear breakouts.
The reason why I am trailing the stop is because I am still concerned about the Weekly chart for Gold being far below the 20 MA. Additionally, there only appears to be a 1 wave correction on this weekly chart. At best it is a 3 wave.
Whilst it is possible we are at the start of a bull run with only a 1 wave down correction, I think the risks are still there. More likely is this is a protracted weekly wave up before the weekly chart trends down again.
So proceed long with caution and look for any bear breakouts.
Note
Gold has breached a key barrier at 1200. I have revised the stop upwards to 1189.5. Looks like it is in wave 3 on the 3hr chart.
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