Good morning,
Maybe market doesn't recognize it clearly but gold market gets more and more psyche, emotions and nervous pricing-in due debt ceil topic. Hence, here we need specific tools for trading this setup:
good morning Sive , traders
I will make observations very short and clear , recording session is easier to explain than charts
1- Gold bullish set up , we have a valid strong breakout out of triangle, but from EW perspective, if it is a triangle, 2047 last month high should be taken out , because if it is wave 4 , then 5 should follow and break higher.
2- should gold fail to break 2047 last month high then breaks 1994 as price action or returning to this zone with strong momentum or daily bearish formation, then we have double top formation and sharp collapse will follow. Yesterday close suggests further rallies to test 2024 which is a rejection zone as 1.272% extension and 1.618 expansion. if we break higher then 2030 2037 targets on chart.
3- Now we cannot know for sure if gold will break 2047 or form double top set up, but if bears want to short, then you can maybe use the above targets to have secure rejection to manage your risk properly. Always look for strong rejection zones to engage then watch price behavior to take further decisions.
4- keep eye on other metals especially silver, if it breaks 26.10 last month high, then you can have more confidence to keep long positions
5- if you want to long gold , it is better to wait for retest to broken triangle 2007 2005 levels or wait for a correction 30m or h1 as abc where to buy with stops below c level .
6- be aware that buying a retest for triangle is a good strategy as long as gold does not move higher to 2037 level with a strong collapse. There is a difference if gold falls from 2024 to 2005 and difference between falling from 2040 as double top or when we achieve 2056 2061 targets.
7- be aware of monthly trend line above with is at 2056 2061 levels acting as resistance, you can use this trend line to try and short if we break higher because it is one of the best rejection zones that offers highest pips in terms of risk management.
8- keep an eye on volumes with time frame as it can be a hint how market is heading D1 and h4.
finally, good luck everyone, do not rush, following news or euphoria because in terms of bulls, market understands one fact, % or return of buying or selling. I am open for both scenarios bearish and bullish but where you engage with the market is the key for maximizing profits and minimizing losses
I hope this is enough
Sincere regards
