Gold has been trading inside of a range for the better part of a month, since it broke above 1660 and I have been looking for the opportunity to buy for a break above 1760. If you remember my buy stops at 1680 never got filled.
If we look at the chart after the breakout of 1660 Gold started to trade inside of a triangle formation and broke with it when it broke with the previous high at around 1723 before reaching the tp of this range at 1760.
I should point out that this range is comprised of 2 MASSIVE levels on the weekly, 1675 - 1760.
Eventually when price hit the top of this range sellers (and profit taking by buyers) slammed price down and now we have reached the broken triangle again, a retest of it whilst Gold trades inside a wedge (orange formation) which points at an explosive continuation to the upside.
This level is the 1.618% retracement of the last leg up and the 61.8% retracement of the entire range.
A buy here would be too aggressive for me since the true pool of liquidity is around the 1700 level. In any case I will be very patient for this entry and probably will not miss it. If this scenario plays out this could yield at least a 1:4 RRR to first targets.
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