Hi dear colleagues!
Let me share a trading idea for gold with you.
Well, yesterday’s idea for trading gold downwards has worked out perfectly. Congratulations to those who ventured to put this into practice!
Yesterday, American selling ended up with a wreck of the bullish trend which had been going on for 4 days. So, I would recommend trading downwards from 50% retracement under the following scheme.
All in all, the overall picture for gold suggests two options.
For those who dream about the gold price at $2,000, it would be better to wait for buying open interest until the price holds firmly above $1,860 – $1,880. Then, it will be the right time to trade on retracements, adding long positions.
In essence, the sellers have to deal with a simpler situation. The selling strategy is backed by two American sessions with selling open interest. Another thing, please turn attention to selling pressure on the support trendline at the bottom of the chart.
The more frequently the price approaches it, the stronger is the likelihood of the gold market slump and a following breakout.
This trading idea is developed on the grounds of the two methods: Price Action and Hunting for stop orders.
The material has been provided by InstaForex Company – www.instaforex.com