Did you spot the triple top in gold ‘s price, along with its struggle to break past the 2000 mark? If a high-reward, low-probability trading opportunity piques your interest, this gold price forecast could be right up your alley. Just remember, always trade at your own risk!
Gold technical analysis: Anticipating a short trade soon
A quick overview of the the gold technical analysis video above
- Triple top formation on the daily time frame
- Signs of possible fatigue in the gold market
- Yellow channel with touch points at around 1800 and 1975
- Pivot point at 1975 seen throughout March
With these factors in mind, let’s delve into the potential trade idea.
The 7:1 Short trade idea on Gold futures
This strategy suggests shorting gold on the next possible spike up at 2010.8. Keep in mind that this is an orientation and you should:
- Set alerts and follow the price manually
- Wait for bull trapping before the last failure and decline
- Take partial profits at about 1942 for a 2.5:1 reward versus risk
The final target for this trade idea is around 1827, which represents a move of over 9%. To manage risk, a stop loss is set at 1.3% above, at 2037.
The trade-off: high reward vs. low probability
As with any trading strategy, there’s no free lunch. Aiming for bigger rewards means accepting lower probabilities. Some might see this as a risky approach, preferring more confirmations. However, if you’re looking for a potential high-reward trade, this gold technical analysis is worth considering.
Takeaway
Keep an eye on gold’s price and be ready to act when the right opportunity presents itself. And to stay updated with more views and analyses like these, subscribe to the Forexlive.com Youtube channel.