Gold (XAUUSD) Trading Analysis
Gold (XAUUSD) Trading Analysis
Dear traders,
It has been a while since I last shared my trading thoughts with you.
Last time I was analysing the AUDUSD and it went down and then up again to pretty much not give me a chance for profits.
Indeed, I had a small loss on this one. Seems like we are in a summer mode and the FX market is less volatile than usual.
I cannot say the same for the metals market. Let’s have a look at gold.
Gold (XAUUSD) Trading Analysis
It has been a wild ride. Gold went up from 1280 to over 1400 in just less than 2 months. There were also a few very good opportunities to go long along the way.
After the last trading session, it could just be a great opportunity to go long.
There was an inside bar on Friday. It occurred just above a multi-month resistance, which means that we might see a breakout.
I will be waiting for tomorrow’s open and see if there is a 4H confirmation of my expectations. I will be looking for a 4H pin bar or a bullish engulfing pattern.
Or why not another inside bar!
Just be careful for price action around the level of 1440. We might experience a fake breakout, so if I see some bullish rejections around this level, I might reconsider exiting my trade.
Happy Sunday,
Colibri Trader
p.s.
Check out my article on Moving Averages Here
Hi Colibri,
Yes multi year R level around 1400
Gold has been in a sort of range since 2012
Upward targets of 1550 but maybe as you said a retrace first 1340 to 1300 ?
Time will tell.
On average indicies move down as Gold moves up so perhaps a correction is coming on the back of Gold signals
Regards
Dan
Hi Dan, was missing you around 🙂 Yes, it is a good setup, but let’s see. Usually inside bar are great for risk management, since a smaller stop loss is required than other candlestick patterns. So far gold is reacting as I was expecting it to
Hi, thanks I’m only trading Dax at moment.
Gold has been interesting to observe though I like market correlations.
Regards
Hi Dan, That’s great! I trade everything that shows signs of price action reversal or continuation 🙂
Colibri,
As an average how many trades would you take per month ?
It really varies. Do you mean how many trading ideas or how many trades? Because as you know I am scaling up when in a profitable trade
Hi Colibri,
Ok that makes sense my question was a bit open ended … never mind.
The main thing is to not over trade.
Note to self hahaha
Ok chat again
Regards
Yes, that surely is very important! Try to keep it reasonable, especially during the summer months 🙂