✔Gold was holding 50200 since mid of May. It held this level at three occasions (see chart) but finally broke it in the mid of September.
✔So, a lot of traders who bought at 50200 support, with stop loss underneath this level, were shaken out in this breakdown. Most would have reversed their positions to short. Gold revisited 50200 in a retest attempt and this...
The price action is saying that this breakdown might fail but still we have to be prepared for both the sides.
Read the H&S educational post attached to this idea.
Please do not consider this idea as a tip.
It is an analysis for the traders who want to learn practical technical analysis.
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Regards
We dun know yet that whether this course of action will be followed or not but If and when the price breaks out of the channel, below the the moving average, one can look for an aggressive entry at the first bullish sign in the anticipation of a breakdown failure. The trade is riskier but that's the beauty of this trade.
Or else if the price breaks on the upside...
