GOLD Buy or Sell ? Price Action Is Key.

18 במאי 2021

Hello traders:

Lately many have been asking about where GOLD might be going, and the question is always whether to bur or sell now.

From my point of view, there is no need to rush to jump into the position right away.
Let the price comes to you when its ready and execute is going to be more consistent and sustainable.

So lets take a look at the overall price action.

We know the price is in a higher time frame correction, flag/channel structure that has been correcting since August 2020.

The latest price shows us at the top of this HTF correction, and depending on how you would identify structure, looks like price is breaking out now.

As always I talk about don't jump into the trades just because price breaks some trendline, S/R line or other indicators.
Wait for confirmation with a clear breakout, and a lower time frame continuation correction is best.
This would be the first option to look for if it develops into such.

Where as the second option would be to see if price will fail to break higher,
instead have a reversal impulse on the LTF, pushed the price down out of this current ascending channel correction,
then look for bearish continuation down.
Very similar like the previous ascending channel that the price formed.

Overall from a higher time frame perspective and long term outlook, I still would like to see this HTF flag/channel finish correction and leads to the upside.
But we also need to acknowledge the price may or may not be ready now for the upside move,
and we need to adjust and have plan to manage if it doesn't.

As I always say, let the price come to you. Plan your trade, trade your plan.
This is how we can be more consistent, sustainable in trading for long term.

Thank you