Technical analysis: Today’s U.S. session aswell should have Buying sentiment, but as I cannot rule out #5-Hour stagnation ahead. It is important to note that Gold is cyclical asset and what caught my attention is current (#3-Month old) . Gold tends to engage the aggressive takedown after rejection on . Throughout May #26 – July #11 , Gold made an break attempt but got rejected and engaged the #140 point decline. On July #15 – August #8 , Price-action made an formation and engaged the (almost #150 point) slide. Similar could be repeated now, and if Gold honors it, I am looking at decent possibility of #1,678.80 Lower Low extension test, and break of can put final Selling extension in motion, currently Trading on #1,585.80 (April #6, #2020) Low. Regarding the indicator (strongly limiting the uptrend), variable is close to Medium-term Resistance, which is rejecting the Price-action since June #10. Means that Gold should be Pricing a Top (temporarily or not) soon and engage the Selling sequence.
Since many Traders of mine made an inquiry regarding how I determine / should position be kept or closed (when is the best time to close the order):
Notice that I’ve referred to this approach as a guideline. It requires thinking (constant monitoring of the Gold charts) and work on Trader’s end to ensure these guidelines maximize the effectiveness of Investing style. All Investors are different, so there is no hard-and-fast Buying / Selling rule which all Investors should follow. Even with these differences, it is vital that all Investors have some sort of “exit strategy”, which I call Risk management (which I am using, especially if is on the market). This will greatly improve the odds that the Investor will not end up holding worthless Position at the end of the session which will provide nothing more than losses. The point here is to think critically about every Position and what could go wrong (especially Fundamental shocks), also create an scenario in which Trader / Investor executes the Position to protect the remaining capital / capital preservation is equally important as a Profitable call, and trust the model (reasons) why he / she entered the market in the first place. Trader should know what his / hers Investor style is and then use mentioned strategy to stay disciplined, keeping the emotions out of the market which can harm the capital. Myself, my approach is more Medium-term and I rely mostly on Technical side. So, Traders understand that the answer to your question is not very easy to give. There are numerous parameters to account to, and even then, there are news that may distort all this. Best asset to rely on is experience, and in certain situations closing the order before the Target, to prevent rebounds and further unexpected scenarios.
My position: I have engaged Buying order with #1,812.80 point entry, calling for #1,835.80 Buying extension, looking to continue my current #8 Profits run. If current is yet to be repeated, expect aggressive #150 point decline on the aftermath towards #1,678.80 Lower Low extension.
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