Gold has fallen off a cliff after Mr Bernanke gave a speech this afternoon, full story on the reuters website http://www.reuters.com/article/2012/02/29/us-bernanke-idUSTRE81S16Y20120229
I dont trade fundamentals but it just goes to show how powerful these people are that they can cause a shift as big as the previous weeks range in gold to tank in less than an hour.
I took a short setup in gold earlier today:-
The basic setup
-double top on a 1hr/4hr time frame
-Previous week high
-aggressive buying into the PWH level
I shorted the market at the PWH and took profit at the first trouble are, as indicated on the screenshot by the orange line.
if the Dax continues to collapse as it has been (fairly aggressively) and forms a triple bottom i will be looking to go long off the PWL. Friday tomorrow and i want confluence with the previous weeks low so if the setup does not get kicked in this week i will cancel my order.
Precious metals are in bullish mode after a couple of weeks of not doing much. This set-up i took earlier today is basically the same as the one in gold yesterday.
Significant break of the PWH… pull back to the PWH level..and then buy. The idea of waiting for the pullback before going long is because fake outs happen far too often. Buying the dip is a much safer way to get a good entry in the market.
Well the market did its irritating thing and missed my pending order by 2 ticks before rallying 5o pips.
Since then the market has ranged sideways, sometimes you’ll find you have to wait a fair few hours for a trade to reach its conclusion. If i were in this trade i would be looking to target the 1.1762 region where their is a cluster of resistance levels.
GBP/USD is tanking towards the previous weeks low level, if it continues to sell off aggressively today i will place an order to buy pounds at the PWL.. looking for a quick bounce and aiming to get out at first trouble area of resistance .
Yesterday i posted on a potential opportunity in gold, luckily i managed to get exactly the setup i was looking for to get long in this commodity.
Technical Analysis
1.Break
The market broke upwards fairly aggressively at the tail end of the Asian trading session and broke the previous weeks high convincingly.
2.Pullback
Over the European session the market retraced back towards the previous week high level, it was here that i had a buy limit order in place, with a tight stop loss in place.
3.Breakout
The market hit my order ranged nowhere for a couple of hours then broke out very aggressively in the afternoon. I took profit at 1753 where there was a previous swing high / the first possible trouble area for around 15o ticks.
Spot gold has moved nowhere in the last 11 days, i’m really tempted to go long if this beast breaks the previous weeks high it could fly after spending so long in a relatively tight range.
However there have been so many fake-outs recently i think ill wait for the break and pull back (if it comes).. so easy to get stung trading these ranging and volatile markets, there is also a Sunday night gap on this that has yet to be filled.
Just going through my charts in prep for the week ahead, spotted this little gem in the kiwi/dollar which i managed to miss. Thought i would post it as it was a great potential trade.
The set-up was similar to the Dow trade i took last week – double bottom 4h time frame/aggressive selling/previous week low.
The setup
-Double bottom
-Aggressive selling into Previous week low level
-’0.82467′ is a Significant level on the daily chart
Presidents Day in the US Monday, liquidity will be thin and generally should be a quite day. Look for the markets to gain some volatility around 6-8pm UK time. I’ve seen big moves occur more than once at this time of day on the back of a US bank holiday,
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