Gold Price Action Analysis – 9th August 2018
GOLD is at a very critical point. After being Bearish for a long time on the Daily and on the H4 chart, it has had some correction. The price is right at the Resistance of a Down trending Trend line. If the price produces an H4 Bearish Engulfing Candle and later we get an H1 breakout towards the South, then it would be rewarding to go short on Gold today. Let us have a look at the H4 GOLD chart.
The price had a rejection from the level of 1215.30. This is a Dynamic Resistance. It is the level of a Double Top as well as the Resistance of that down trending Trend line. If the price produces an H4 Bearish Engulfing Candle right from that level and we get an H1 breakout at the level of 1205.95, then the price would head towards the level of 1190.75 without having that many pauses. Let us have a look at the summary of the trade…
- Sell Stop Order: 1205.95
- Stop Loss: 1215.30
- Take Profit: 1190.75
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
As we see that the price is at a Dynamic level since it has two levels of Resistances. We are waiting for a downside breakout since the overall trend is Bearish. However, it could make a breakout towards the upside as well. Then, we should only look to go long on Gold in coming days. One thing for sure that Gold is to make a decision and that will be done soon.
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