GOLD Visual Trading Update

Current Trading Plan:

Position: SHORT
Last (05-03-2010) Closed position @ 1130 (+$0)
Long: Above 1147
Short: Since 09-03-2010 at 1125
Exit by Stop Loss: at 1140

Technical Indicators Notes:

Last time we said: "We are now in, because this asset is usually more aggressive than the other ones, in the whole risk complex. We have now two lower highs and lows (H4 Chart), and this is what we define as a trend. Also, look how the MACD told us beforehand that this reversal was coming. The only problem (uncertainty) that we have is in the daily chart. Price is approaching the intersection of both channels, and this is where rebound usually occurs. We hope our SL will withstand this."

Why did GOLD move from 1137 to 1107, so quickly and then retraced so abruptly? God only knows. Maybe it was to test the intersection we mentioned yesterday? Technically the metal is still in a down trend, and we will wait to see a continuation inside the descending channel or a breakout to new highs.

RSI-STOC Combination: Negative
ATR: Very low volatility
H4 MACD: Reversing. Possibly positive.
Daily MACD: Still positive in posture and movement.

Charts Legend:

Price Window:

Simple Moving Average (18): Orange
Bollinger Bands (18,2): Orange
Support & Resistance price areas: Pink and Light Green areas
Trend lines and Channel Boundaries: Blue
Elliott Waves Counts: Black and Blue numbers

Indicators:

RSI (10): Blue, STOC(5,3,3): Green, ATR(5): Blue
MACD (12,26,9): Blue, Signal: Red, Histogram: Green

Signals:

Long:  Above the Green line
Short: Below the Red line
Exit position: On crossing the Cyan line
SL in case of triggered level: Dashed Cyan Line

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