Shorting Gold: Bearish H&S

This mornings trade idea on USDCAD is so far working out well. The support level is holding well and at the time of writing I am up a little over 80 pips!

Thats my first trade this year and it better get the year going with the "right foot'!!

So, I just entered a second trade today. I am shorting Gold. The details of the trade are in the below screen shot.

Let me explain my "painting".

The white lines show you the sideways head and shoulders.

The yellow line shows you the current support level. If this level is broken (its the neckline) it will confirm my sell idea on Gold.

Which brings us to the green zone, which is the take profit zone. Again, since I am a little rusty in the markets, I will be taking the closest profit area, which still gives me a 3:1 reward/risk and that makes me very happy!

Now I know that the US stock market is taking a hit at the moment and people might think that Gold should head higher, I recon that the US stock market will not (at least yet) have an effect on Gold, so I believe this trade idea has a good chance of working out, just as long the yellow support level gets broken.

I will make a re-cap video of both trades once they are closed!

Peace out and have a good week!