*My short term daily technical analysis of the spot gold lower timeframe price charts*
This will be a quick blog post to show you, what I believe, to be good short term trading opportunities on the spot gold markets.
Let’s start with the 1hr timeframe chart.
Price is making a nice bearish downtrend on this chart but it does seem to have found support at the $1450 level. This is a nice psychological whole number and looking at the candlesticks forming, there are 2 clear rejections of this zone now. Strong bullish candles have formed a double bottom at this zone.
My first potential trading opportunity is to wait for price to break that bearish trendline which is very close and then buy the breakout momentum. This could prove very fruitful because when gold breaks trends and support/resistance zones, it tends to make strong gains in that direction.
Let’s look at the lower 15 minute timeframe chart for more information.
As you can see on the 15m chart above, price is clearly held up at the $1450 price zone (shaded region). Multiple bullish candles are forming which shows there are buyers at this level.
If you look carefully, you can also see that this mornings bounce off the support zone is actually a higher low compared to yesterdays rejection. This is key, because I believe it shows that the number of buyers and support strength is increasing.
Another trading opportunity would be to wait for price to break to the upside and wait for a pullback alter on today to buy in on the bullish momentum at a reduced price with better reward:risk for your long positions. Waiting for a higher low or bounce from the pivot level (if it’s broken) will give you a better return vs risk than simply buying the bearish trendline break however you do run the risk of not getting an entry at all if price doesn’t make a pullback.
I am personally long spot gold from earlier this morning. I entered a long position at $1452.20 after the higher low formed and $1450 support zone appeared to be holding strong. This is a higher risk entry but with a R:R ratio of over 5.7R it made sense to me.
I will potentially use one of my other trading opportunities listed above to scale in on the bullish move if it occurs.
If you look at the charts, I have my profit targets set at the $1482 support/resistance zone. This had been a strong support for price for many weeks until it was finally broken so I feel it could now become a strong resistance. However, this price level is highly unlikely to be reached today so that would involve holding positions overnight which some of you may not like.
Scaling out of positions and taking profit towards market close is another good option to avoid overnight market gap risks.
DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.