So this setup for gold is amongst the most straight forward setups, a lot of confirmations coming together at the same point.
Break and retest of trendline
Fib key zone
Previous reversal zone
Touch of a smaller scale trendline
if could be a very nice buy opportunity for gold, and I will definitely be keeping an eye on this setup, provided I get price action, I will execute.
HOWEVER...
I dislike this setup for a few reasons:
1) Its too straight forward and easy, meaning a lot of traders most likely see the same setup. So be very careful, a stop-hunt move might occur before we see bullish move.
2) The more the trade wars between the US and China slow down and calm down, the lower gold will visit. Meaning if they manage to reach an agreement that benefits both parties, gold will slow down and drop. The more tension between both parties, the higher gold will go, due to it being a safe haven, and investors will invest in gold to keep their money safe when there is uncertainty in the FX market.
This is a scenario that you just have to keep an eye on when it reaches the key level of 1290.00, and then decide whether you want to execute or not based on price action + fundamentals.
Will keep the telegram posted.
@PipsOfPersia
t.me/pipsofpersia
Break and retest of trendline
Fib key zone
Previous reversal zone
Touch of a smaller scale trendline
if could be a very nice buy opportunity for gold, and I will definitely be keeping an eye on this setup, provided I get price action, I will execute.
HOWEVER...
I dislike this setup for a few reasons:
1) Its too straight forward and easy, meaning a lot of traders most likely see the same setup. So be very careful, a stop-hunt move might occur before we see bullish move.
2) The more the trade wars between the US and China slow down and calm down, the lower gold will visit. Meaning if they manage to reach an agreement that benefits both parties, gold will slow down and drop. The more tension between both parties, the higher gold will go, due to it being a safe haven, and investors will invest in gold to keep their money safe when there is uncertainty in the FX market.
This is a scenario that you just have to keep an eye on when it reaches the key level of 1290.00, and then decide whether you want to execute or not based on price action + fundamentals.
Will keep the telegram posted.
@PipsOfPersia
t.me/pipsofpersia