Is still locked within the boarders of strong support at 1,526 and strong resistance at 1,796. Short term the falling channel from 1,796 is determining the direction for gold, which is still to the downside, with the possibility of testing strong support at 1.526 or even slightly below before wave 4 finally comes to an end and wave 5 higher takes over.
Short term a break above 1,620 will be the first indication that wave Z and wave 4 might be over, but it will take a break above 1,695 to confirm, that wave 4 has indeed bottomed and that wave 5 is developing. So for now we should stay humble for a possible move closer to 1.526, but we are also closing in on a nice low risk buying opportunity, but remember no trades without a stop loss...
Good evening EWS,
ReplyDeleteI would like to know, if it is possible, your method to determine the stop loss level ?
Thank you a lot.
Eric
Hi Eric,
ReplyDeleteIf I was to take a position near 1,526 I would use a stop just below 1,412. I would not expect this decline to reach that level and would expect that I would be able to raise my stop quickly to minimise the risk.
Normally I wouldn't recommend a stop larger than 1% and therefore I would only commit 10% of the normal trade size to make the risk 1%.
When/if the expected wave 5 is confirmed I will commit the rest of the normal investment with a 1% stop.
Kind regards
EWS
Thanks for your analysis, EWS!
ReplyDeleteHi Heiko,
ReplyDeleteYou are most welcome.
Kind regards
EWS
Hello EWS,
ReplyDeleteThank you very much for your answer about stop loss, it helps me a lot.
Take care,
Eric