Just a quickie here. Covering my GOLD short. It was a lot of fun to play the contrarian and land in profit, but GOLD has reached a significant support structure and also it is just below the lows since the 2070 top so this would be a likely area for a shakeout reversal pattern.
It could of course go much lower but this was just a simple trade off the shooting star for some simple profit and there are better trades elsewhere from here I think. I do think GOLD will see much lower lows and if a chance presents itself I may short again, but this is not really a name i'm really interested in currently other than for the fun of charting.
Not advice.
It could of course go much lower but this was just a simple trade off the shooting star for some simple profit and there are better trades elsewhere from here I think. I do think GOLD will see much lower lows and if a chance presents itself I may short again, but this is not really a name i'm really interested in currently other than for the fun of charting.
Not advice.
Note
This example shows the importance of understanding shakeout patterns. There will have been plenty of bears rushing in to short the breakout to the downside here only to get trapped on the bounce.And now that it has bounce and I am out, here are 2 reasons why I didn't buy back in.
1) GOLD is at a top. I want to buy low not high.
2) There are both short and long term resistances above which make a rally less likely. See on the chart price is just below the 2011 top now acting as resistance. And a rally could still happen but this is a game of probability and really anything could happen now. It could bounce a bit or get caught up in a sideways correction or fall, but the easy trade was from the star close.
Note
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Your FA guru can't read a chart💭
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.