The video below presents a technical analysis for Gold as the price of XAUUSD is close to $1700 and the trade idea, for your consideration, becomes applicable only if the $1700 'round number' price is lost (crossed down).
If that happens, we look to fade the downward move, so seeking to enter a long position betting that there will be a bullish reversal up. Since it is impossible to catch the exact bottom, even if the trade idea plays out, we scatter a small net of three buy orders as follows:
- First buy for Gold futures at $1684.20
- Second buy Gold futures at $1673.6
- Third buy Gold futures at $1660.6
- Average entry price, if all 3 orders are filled: 1672.80
- For the stop loss and 2 take profit targets: Watch the video.
And as always, as the Gold price forecast within the video shows, we set a stop risking 1.66% and aiming for double that on the take profit side of the long position. Furthermore, since there is very sifnificant upside potential for ther long term swing trader, if this Gold trade idea plays out, then letting half of the position ride further, as detailed in the technical analysis video, is something worth thinking about.
Trade gold at your own risk. See more technical analysis at ForexLive.
Note that it very possible that some of the buy orders get filled, trade becomes profitable, and there would be another lower buy order hanging. This is what happened with our recent DAX trade idea where the top buy order filled, and the trade is currently very profitable. In that case, traders can stick to the original idea or cancel the lower (unfilled) buy orders and set a stop at their discretion, including working with the stop losses that we may have suggested to consider. This is solely up to you, just be aware of which of your Gold orders get filled and adapt.
