In the daily chart, Gold prices look to be in an uptrend and against the general move in the monthly chart. Even though it is likely that prices might continue appreciating today, higher time frame set up will as always take precedence and as such I will look to short Gold today. Fact is, after last month’s bear candlestick, a double bar reversal pattern was confirmed and should there be a confirmation, then it’s going to be awesome if we see prices moving lower today.
Our entry chart is the 4HR chart and besides the lower lows relative to the upper BB, prices are actually over-extended to the upside with clear stochastic buy signals. There is also a stochastic bear divergence between March 5 and 7 and as history shows-it’s in a smaller scale-that a follow through is right on the cards.
Advised by this, my Gold Trade plan is this:
Stop Loss: 1340
Take Profit: 1315
What’s your opinion? Let me know. Otherwise, have a good trading day and don’t forget to BoC Interest rate decision and ADP Non-Farm Employment change later on in the NY session.