Well gold has been getting a lot of attention lately, as it is where money flows to when the markets are uncertain or scared of the future.
This has cause gold to break back into higher highs, especially after the #BRexit event, pushing this market into an uptrend.
Now Gold is clearly pushing higher, we want to try get on-board this momentum – sometimes it can be challenging because Gold is an strong aggressive and we just don’t want to ‘chase’ higher prices.
What we’re waiting for is the market to pull back and create a higher low, which is the sweet spot for entering a bullish trend. This is what I call trading in position.
Many traders lose money chasing trends because they trade ‘out of position’, and there are certainly plenty of times here you could have bought gold and have your stop steamrolled over by a counter trend move.
Now we’ve got a bullish rejection candle here that has created a lower high, but showing us lower prices are being rejected.
This provides a nice frame work to build a long position off.
I was waiting for a deeper pullback to the weekly support there around 1300 – if this signal doesn’t work out, then I will be re-targeting long signals at that level.
Best of luck on the charts! Stay cool for summer trading conditions!