Here I am with yet another trade idea that I will be taking. I did release a handful of trade ideas in our members forum but we did receive plenty of demand for a free blog post after the recent successful posts we released in the last 2 weeks.
Today I am taking a sell on Gold and in this post I will give you all the reasons I am taking it down for the FOMC meeting.
I will be starting with the 4H chart and I will explain my trade idea in full detail so you can see what I am thinking of when taking this trade.
As you can see on the 4-hour chart Gold just reached the top trendline right where the 30 EMA is which is acting as a support. The new 4H candle is set to appear in the next hour (currently 12:45 UK time) which could confirm a reversal candle pattern if the current candle ends in the red. There is however plenty of time before the FOMC meeting later in the day, a meeting I expect to strengthen the USD thus pushing Gold lower.
I am targeting the 1,300 zone as my take profit area that's a 1430 pips away. My SL is right above the blue DC level (600 pips away) giving me a slight 1:2 risk/reward.
I will be moving my SL closer to price action the further I get into profit. I will soon explain my game plan for this trade but before I do that let me go over the daily chart.
As you notice the yellow zone has been a crucial resistance in 2017 so far but has also acted as an important support on the 30th of August this year where Gold made a strong bullish move after touching the key level. We now expect price action to make a retest of this important area.
Price action did find support at the 30 day EMA yesterday which pushed price action to retest the top trend line seen on the first chart I released (the 4-hour chart).
I believe that if price breaks the specific level it could go all the way down to 1230 and make a full retest of the recently broken MAJOR trend line.
I will soon be fully bullish on Gold but I think that I will have to wait till November or most likely december before I enter my long trend trade in which I plan to stay in till gold reaches the 1,900 or 2,000 level.
PS: You can click on the images to enlarge them.
My game plan: As you see, I am shorting Gold today and will try to stay in if I see that the 1.300 level will be broken, meaning I will ride the move lower if I see good potential.
In my medium and long-term plans is to buy gold and hold as I believe Gold has now given me perfect indications that it is beginning a long-term uptrend.
I will not disclose much more information on when I beleive that will happen or why, I will however releasing this information in my webinar which will be held next Tuesday and you are welcome to attend, if you cannot make it, then you can request a recording of the workshop. Please click on the "events" tab for further info or press here.
I don't know if you know this about me... but...
(Just kidding , really wanted to use the Will Ferrell GIF)