Yesterday saw quite a good opportunity to go long on gold, it has been up trending since the beginning of the month, and at my entry price, it seemed to be on the resistance line whilst also just ticking above the day before's low.
Gold
Here you can see the chart I was looking at. This was a 4hour candle chart, and gold had been up trending over the course of the month.
The economics behind this are what seems to be a 'risk off' move.
As the market is anticipating a global slowdown, with poorer than expected Chinese, European and US data coming out.
The intra-day technicals for my entry point were the fact that the price was falling to the day before's lows, thus anticipating a support line for further price increases.
I went long at about 1246 as you can see.
The price did turn slightly and was up around 15 ticks, as this was more of as long term opinion I wanted to leave this trade on for a couple of days. So I raised my stop/loss to my entry point, thus meaning I will lose nothing from the trade.
However the move didn't materialise and I got stopped out at scratch.
However the move didn't materialise and I got stopped out at scratch.
USD/CAD
There was a pretty big sell off of the US Dollar against the Canadian dollar in reaction to some news from the Bank of Canada, that they have upgraded their forecasts for GDP.
It was quite a big move, and I looked for a retracement as sellers looked to close out their positions.
This was a 10 minute candle chart. The retracement started to happen and after it moved up about 10 ticks I again put my stop/loss at my entry price.
And again I got stopped out at scratch.
At this point I was starting to think that about whether I am putting my stop/loss too close to the price?
Especially as there was a pretty big retracement in the coming hours after I got stopped out, of about 60%.
US Crude Oil
Heavily anticipating the EIA US Oil storage numbers coming out at 2:30, I sat there ready for an unexpected number coming out.
Sure enough one did, and there was more than expected, thus within seconds I got into the sell off, and about a minute later when the selling had cooled off, I close the position.
The sell off was about 80 cents (80 ticks), I managed to catch about half the move (as many traders got the info seconds before the official number came out). Making about 40 ticks (4% increase in my account).
Overall, over the past 5 days I am up 8.45%.
My plan of action over the next 5 days is to try and see a few longer term trades that can be left on for a few days.
With a big longer term view of the economics involved and the technicals used mainly for entry and exit points.
