13 Sep 2016

GOLD - FINDING A GOOD ENTRY

XAU/USD DAILY

The price has been trading in a consolidation range since July and is coming closer to a resolution.

I am looking for a long entry, but there are two possible ways to approach this set-up:


  1. A test of the 2016 rising trendline support - a test of the major psychological level at 1,300 which is also important because of the rising trendline support and the polarity change as the old resistance becomes the new support, would work as a great entry as it would offer a good risk/reward ratio with quite tight stop just below 1,300 and the first target at the current range resistance around 1,340.
  2. An upside break out of the bull flag/short term falling channel formation - a daily close above 1,350 would trigger the bull flag/channel breakout scenario with the first target at 1,400. This scenario would require a break and retest entry to avoid bad risk/reward due to large stop loss.




1 comment :

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