Gold's been stuck in this stupid 1184-1214 range for a couple of days now, too long for a trend trader like me.
My current line in the sand is 1184, so above only longs, below only shorts...at least until highlighted levels are hit. At those levels I'll reassess trend strength. If it's still going strong, I'll stay in trades...if not, I'm looking for reversals.
I can't predict how far moves will extend, so will play this purely on trend strength (directional movement index) on the daily charts for overall sentiment and M15 for potential re-entries.
I'm still short now, but we're not that far from 1184 and I'll remain flexible. If it breaks through 1184 and then 1194 I'm probably a bit more interested in longs again. Obviously the psychological 1200 will have an impact too.
Fundamentally the Fed will eventually raise rates and the dollar will appreciate and gold will continue its fall. It's not a question of IF, but rather a question of WHEN. The only issue I see is China because if it crashes which looks quite likely (at least temporarily), people there might react in the same way as over here in the west...as in...they'll pile money into gold which would obviously complicate my longer term short bias.
Who knows, remain flexible and simply follow TREND STRENGTH & DIRECTION!
EDIT: Also, 1202ish was the closing price 8 times over recent days...so that's clearly another level you should keep in mind ;)
My current line in the sand is 1184, so above only longs, below only shorts...at least until highlighted levels are hit. At those levels I'll reassess trend strength. If it's still going strong, I'll stay in trades...if not, I'm looking for reversals.
I can't predict how far moves will extend, so will play this purely on trend strength (directional movement index) on the daily charts for overall sentiment and M15 for potential re-entries.
I'm still short now, but we're not that far from 1184 and I'll remain flexible. If it breaks through 1184 and then 1194 I'm probably a bit more interested in longs again. Obviously the psychological 1200 will have an impact too.
Fundamentally the Fed will eventually raise rates and the dollar will appreciate and gold will continue its fall. It's not a question of IF, but rather a question of WHEN. The only issue I see is China because if it crashes which looks quite likely (at least temporarily), people there might react in the same way as over here in the west...as in...they'll pile money into gold which would obviously complicate my longer term short bias.
Who knows, remain flexible and simply follow TREND STRENGTH & DIRECTION!
EDIT: Also, 1202ish was the closing price 8 times over recent days...so that's clearly another level you should keep in mind ;)