Gold - Long on Potential Head and Shoulders

Good evening traders! As you all know, I was short from 1341.8 and looking for price to hit my target of 1305 1.64% . Well, Sunday night's price action was aggressive to the up side and I decided to close my trade and take my profits for a solid 23.1 points. At the same time, I began building my long position, taking a 1/2 stake in Gold 0.09% @ 1317.90.

On the chart I have circled the 3 points that make up the potential head and shoulders. While the head is not that far below the left shoulder, it's enough for me! Especially if the current right should continues upwards. It is also creating a very large double 'W' pattern.

The Stoch RSI is also confirming a move higher. The first thing to look for is that the cycle is at the bottom. The second is if the green line has crossed above the magenta line. Both are true here.

If price does pull back, I will add to my long.

As always, please I look forward to your questions and comments.

Safe trading!

Zlecenie aktywne:

After the BoJ announcement last night, gold spiked up, then down, and then began it slow move back up. I placed a limit order at the top of the spike up and added to my position @ 1324. My combined position is now 1321.

If the Fed does not raise interest rates today at the FOMC, I'm expecting an extremely big move to the upside. Here are my profit targets:

PT1 - 1357 - upper BB
PT2 - 1390 - upper BB on the weekly chart
PT3 - this will be my runner