Emerging Pattern: Is Gold a Short or Long Opportunity?
Good day Traders,
Trust your day is off to a great start.
Here is my analysis of the gold market.
1. Pattern: emerging bullish butterfly with 1% tolerance.
2. Completion: The pattern is projected to attain completion at point D, which is approximately at 2334.638 on the chart, which is why we are considering short position.
3. PRZ Zone: The potential reversal zone in anticipation of a bullish reversal ranges from 2334.638 to 2261.280. This where we intend to close our short trades
4. Target Levels: The targeted levels are T1 at 2401.823, T2 at 2370.158, and T3 at 2335.314.
5. Entry: I am looking to confirm a break and close below 2452.511 price region downwards, with solid market resistance before entering the sell trade. Why wait for a break and close below 2452.511? The broken H1 supply zone could act as a demand zone thus pushing price upwards.
6. Invalidation: Should there be a break and a close above the H4 supply zone at 2483.74, this would invalidate the setup and the associated trade idea.
Please note: Rising tensions in the Middle East can increase demand for gold (thus increasing its price further) as investors seek to protect their capital from potential market volatility.
Cheers and happy trading!
Trust your day is off to a great start.
Here is my analysis of the gold market.
1. Pattern: emerging bullish butterfly with 1% tolerance.
2. Completion: The pattern is projected to attain completion at point D, which is approximately at 2334.638 on the chart, which is why we are considering short position.
3. PRZ Zone: The potential reversal zone in anticipation of a bullish reversal ranges from 2334.638 to 2261.280. This where we intend to close our short trades
4. Target Levels: The targeted levels are T1 at 2401.823, T2 at 2370.158, and T3 at 2335.314.
5. Entry: I am looking to confirm a break and close below 2452.511 price region downwards, with solid market resistance before entering the sell trade. Why wait for a break and close below 2452.511? The broken H1 supply zone could act as a demand zone thus pushing price upwards.
6. Invalidation: Should there be a break and a close above the H4 supply zone at 2483.74, this would invalidate the setup and the associated trade idea.
Please note: Rising tensions in the Middle East can increase demand for gold (thus increasing its price further) as investors seek to protect their capital from potential market volatility.
Cheers and happy trading!
ملاحظة
Keep in mind that, supported by the geopolitical events in the Middle East, this scenario is also a possibility.
ملاحظة
Gold has done +83pips now, aided by the US Consumer CPI Inflation data.ملاحظة
From the EP-entry point, Gold has now done +192pips.
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