Gold has been within a range on the H4 chart. However, the price has been Bearish and kept making lower lows. There are some strong levels of Support to be broken to head towards the South. As things stand with Gold it seems that we might get an H4 breakout towards the downside. Only a breakout is not enough though. The breakout level also has to be held by the next H4 candle and to produce an H1 Bearish Engulfing Candle to offer us a short entry. It means we are anticipating an ABC pattern here. Let us have a look at the H4 Gold chart….
Gold Price Action Analysis – 5th Sept 2018
Today’s first H4 candle came out as a Bullish candle and the next one came out as a Doji candle. If the current candle comes out as a Bearish candle and makes a breakout at the level of 1188.95, and the next H4 candle is held by the breakout level, then an H1 Bearish Engulfing candle right from the breakout level would be the signal to take the short entry. Let us have a look at the summary of the trade…
- Sell Stop Order: 1188.95
- Stop Loss: 1194.40
- Take Profit: 1173.60
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
Most of the pairs have been within a range. The pair that had a strong trend, they have been on consolidation. It happens when pairs are to take big move ahead. I assume this NFP would have some strong impact in the market for some weeks at least.
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