Having a trading plan enforces us to be disciplined.
That is the reason I always try to have a trading plan for each of the instruments and currency pairs I’m trading.
It doesn’t have to be complicated, rather something simple, and easy to follow.
For instance, we all know gold tends to go up when there is economic uncertainty in the world. But it’s not like I’m going long right now, I need to find the right level and time to go long (with technical analysis).
So here is the short term chart:
So right now I’m waiting for the market to break the upper short term resistance level, because I know that once it happens, it is likely to continue its way up.
What do you think? Do you trade gold?
Last week I write about Gold, it was on its way down and I was expecting two things:
- waiting for it to reach the next long term support level and
- get rejected from it.
Guess what? It just happened.
It looks like GOLD (XAUUSD) was rejected from the main LT support level and should be ready to continue its way up.
This is how the daily chart looks like:
What do you think? Are you trading it?
Let me know.
Really! The market is nervous, I’m nervous and most traders are too (I hope)! I just don’t think this is the right time to look for trade opportunities.
The situation on Greece its not looking good for the Euro, the surprising interest rate cut by the ECB (they are saying “euro economy it’s not looking good”), tomorrow USD and CAD employment reports. Do you see any reason to trade?
The only winner is gold (XAUUSD), it’s been going up, it is likely to continue its way up. If you have a long trade open I’d suggest you to hold it, if you don’t, just wait and resume your trading next Monday!
I’ll be looking at charts, but now way I’m going to trade neither today nor tomorrow!
Trade safe ok?
You know I’ve been monitoring gold (XAUUSD), I was waiting for it to break the ST resistance level around 1681.51 and guess what? It just broke that resistance level. This means that as long as gold stays trading above this level, it is likely to continue its way up, in short: gold will go up:
How far up could it go?
I’m a firm believer that it will reach new historical highs, but I don’t trade based on what I think or what I believe. It has a strong resistance level around 1910.77, so all TP orders should be set just below that level.
I’ll keep you posted.
I’m going to tell you the truth, I don’t know… in fact, no one knows for sure! But (there is always a “but”) I can tell you a few things that will give you so insight about when it is likely to resume its upward movement.
Right now, gold (XAUUSD) is trading pretty close to an important long term level (around 1553.33). Before I start looking for trade opportunities, I need to make sure gold is rejected from the important support level that I’m talking about. When will this happen? When it breaks the resistance level of the short term range, only then I will feel more comfortable looking for long opportunities:
So once it breaks the green short term resistance level, I’ll start looking for long opportunities.
A few weeks ago everyone was talking about gold, it hit all times high, it was time to buy gold, etc. It probably had the best rally ever, almost reached the $2000 mark. Now let’s ask ourselves a question: Why did it go up? There is no right or wrong answer, but I’m sure most of you agree that gold went up because of the world economic conditions (therefore using gold as a safe haven), they are not good.
Now, XAUUSD has retraced, it dropped like a rock, and probably had its worst fall ever, it almost reached the $1500 mark in a few days. Talking fundamentally, does this drop make sense?
I don’t think so, world economic conditions haven’t changed, so I think we could see gold reach higher levels.
Is this the right time to trade gold?
Nope, it is trading pretty close to an important support level. I’d like to see it trading in a short term range first, then a breakout of the ST resistance level, only then I’ll be ready to trade it, for now, I’ll wait.
What do you think?
I have, look, based on the current economic conditions, debt crisis, etc the demand for gold has been increasing on the last months. What is bad for some financial instruments, it’s good for others.
Almost every day I see someone “with authority” (yesterday was the turn of George Soros) talking about the Euro zone crisis, or the concerns about global growth, US debt crisis, consumer confidence going down, etc. And what is what some investors, traders, and even some central banks do? They try to get their hands on gold. Gold has been making new highs and it will probably continue for the next months (or even years).
How far could it go? I don’t know, I’m no magician… something is clear though: the demand for gold its likely to increase (meaning that the price will go up). So we should think about doing something about it.
I’m planning to open a trade on gold, a long term trade, I just want to make sure to have good timing, because with the leverage offered by Forex brokers, we can’t allow the market (gold) to move many pips against us, so I’ll have to use a tight SL…
I’ll keep you posted about my thoughts and/or if I take a trade on gold!
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