Gold has made a double top at 1375. After testing support 1325-1330, gold is re-bouncing to the resistance area at 1345-1350.
- Sell Limit @ 1347
- Target 1305
- Stop loss over 1360
Real stop loss and take profit level will be calculated once trade is executed. Stay Tuned.
Price seems like loosing steam after reaching 1344. I do not want to miss this short opportunity so I sold half a contract at 1342. If price ever reaches 1350, I will add another half contract to make the median price at 1346 for 1 full contract. One more contract is still set limit at 1347. So now the plan:
- Half contract sold at 1342.
- Sell limit at 1347, one contract.
- Sell limit at 1350, half contract.
Sell limit order was hit. Trade is active.
Stop loss is set at 1360. Take profit level is set at 1310.
150 pips so far so good.
Here is my updated trade plan:
MA(20) on the daily chart is at 1320 so I am thinking about taking partial profit at 1320-1325 area and let the rest run till 1310.
Take partial profit now if you want. Gold is trading at 1324/1325 now. I will take profit at 1322 for the half contract I shorted at 1342. I will let the full contract at 1347 to run till 1310.
Took profit at 1322 for half contract sold at 1342. Moved SL to break even for 1 contract at 1347.
I took profit on another half contract at 1325. I shorted a full contract at 1347 so I made 220 pips on a half contract. So now my position is half contract sold at 1347, stop loss break even.
Gold seems to hold 1320 and move higher from here. I have decided to close the rest of position at 1328 and made 190 pips on a half contract.
if it closes above 1360, the low at 1327 will be a short term low and gold might test 1375 and higher. This is all about analysis and trade plan. Once things don't go the way I have analyzed, there is still time to get out of the game.
1360 I guess. You do not want to set SL only a few bucks above your sell position. There is a risk that you order will be stopped once the stop is set too close. Plus I only change my short term view if gold gets above 1360.