To be honest, it’s the week I would really like to forget.
Rate cut without prior notice (Thanks Powell! And No Thanks To BOC), Italy and across Europe on lock-down, Cryptocurrencies went deep south, Indices saw a huge drop (worst than ’87 Black Monday) and Gold losses its gain in just 5 trading Days.
Corona Virus? Not to say the least.
Technically speaking, most of those mention, is at Overbought Territory.
But no one expect a huge drop might take place, especially in Gold.
Price did touch the $1,700.00 handle last Monday.
Then seller came in and the rest is history…
In this 3rd article of mine, I’ll continue to give an ‘opinion’ on Gold.
Do take note that this analysis doesn’t serve as a signal nor a holy-grail technique.
At times, my ‘opinion’ can turn against me and be Holyshhh!
I did spot this Bear Flag formed and thought, ahh…what the heck… I’ll just put a Sell Limit as Price always retest a significant chart pattern.
Sadly, it didn’t! Shame on you Gold!
From this point on, Gold Drop at approximately 130 Pips and never came back. Sigh!
Well, this is normal for a trader.
It’s not the end of the day when you miss one good trade.
Remember in my last article when I drew some significant zones to go long?
See how price breaks those significant zones, retest and continue to drop.
With this small data, those Long traders should wait for price to break these zones once more before placing any Buy Orders.
Buy Stops perhaps?
As I mention in my last article [https://marubozu.co/theme-of-the-week-fear/] I would switch from being Bull to Bear, if there’s a significant signs that price may go otherwise.
To conclude, Gold broke its TL.
A retracement might take place tomorrow onward.
But I’m eyeing a price reaction once price reach this particular zone (1480-1490). *Cough*
~ Patience Is King ~
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Disclaimer : Trading comes with a risk. Any material posted in this article are meant for educational purpose only.
P/S : I’m currently placing my trades using Islamic Zero Spread Account under Hot Forex. Open one today.