Yesterday, despite Friday's price action, I highlighted the possibility of a continuation in the recent uptrend in PMs with trades in Silver, Platinum and JNUG. Fortunately, only one of these three trades was triggered, and today's price action signals to me that it is time to flip and turn bearish.
There have now been three reversals (circled in red) at the current area after a big turnback on Friday. This signals that the upside momentum and probably the recent green trend line is likely to be broken in the near term. I expect support to come in fairly soon and precious metals to continue higher, but we will stay in the trade until the market shows some support, then look to flip back long.
Trade
Sell spot gold @ $1320.4
Stop @ $1329.5
Target $1298.4
Reward:Risk 2.3
Bonus trade
I also like the look of GBPUSD on the short side after today's big reversal. Again, I think this will be a short lived pull back, but will try to make something out of it.
Sell GBPUSD @ 1.3185
Stop @ 1.3290
Target 1.2928
Reward:Risk 2.4
Trade update
My GBP long trades have been developing nicely and I am raising my stop and target prices. Please see comments in the link for the update.
If the trade entry is triggered, the stop loss will be adjusted as the trade progresses and our position may be closed early based on price action. Please pay attention to your risk management - I recommend not to risk more than 1% of your account per trade.
What do you think?
Thanks for reading, any feedback is much appreciated!
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Disclaimer: These are my ideas only and do not constitute investment advice. If you place any trades listed here you are doing so at your own risk and I hold no responsibility for any losses. Please pay attention to your risk management.