XAUUSD GOLD Forecast and Trade setup for 20th January, 2015
Potential Bearish Cypher pattern completing at 1290-1300 resistance level
For gold, My targets of 1290 have been achieved from my analysis from earlier this year. So right now we are seeing a small rejection from the 61.8 fib and 127.2 inverted fib. The 78.6 fib for Cypher to complete is at 1298 to be exact so we may see failing rally to attempt to break the 1300 levels.
- Cypher pattern completing at the 1298 (78.6 fib)
- Bearish Trendline also at that zone
- Monthly and Weekly Charts are in Bearish Ichimoku Technicals
- 1300 round number acting as good resistance
- Could be risky selling into it, because of a very strong bullish run
Outlook Trade opportunity
So this is how I would trade - Since its been in a very strong bullish run, I shall be looking for another rally towards the 1298-1300 which i predict could possibly be a failed rally. I'll look for Rejection Price action candles on a H4, and once confirm would enter a short, with stops above the failed rally .I would classify this trade to be a higher risk due to the bullish run, and also where the zone is located where the risk :reward won't be stacking up in our favour