XAUUSD Forecast and Trade setup for the week 9th February, 2015
Since my last trade setup from the 20th of Jan 2015, my short setup for the gold market was in my favor as it has worked out perfectly for a Cypher Harmonic Pattern which completed at a very nice 00 level and resistance level.
This week would be interesting after last Friday's positive US data pushing the gold even lower towards 1230's. Reflecting on the charts, the Weekly Candle and Friday's Daily Candle is quite bearish, and could perhaps have some momentum to go lower at beginning of the new trading week.
Lets see the charts and comments below:
Weekly Chart
- Quite a large bearish candle last week
- The Ichimoku Tekan and Kijun Sen lines should act as support
- The Clouds did provide some resistance last two weeks where the candle did pierce through the clouds and having two consecutive relatively small body candle
Daily Chart
- Bearish Cypher did work perfectly from my post from 20th of Jan
- Friday's Candle looks quite ugly for the bulls, where we currently holding support at the 1230's and last weeks Weekly S2 pivot
- Ichimoku Clouds are still indicating a bullish future and if you see how price and the clouds had a huge gap / space... perhaps this retracement is needed
- Apart from the clouds acting as support, we do have an ascending trendline drawn in from last years lows .
- My view - still in a bullish bias, and possible sideway action to come
4 Hourly Chart
- Now the 4hr Chart does look ugly. however we do have the 1230 support and the Ascending trendline and don't forget the Daily Chart Ichimoku clouds...
- Note that I spotted some Positive RSI Divergence
Outlook Trade opportunity
For this week, there might be some sideway /ranging action if the 1230 support holds.For Intraday / Scalps - Shorts favoured at around 1250
For Intraweek / longer term - Long Favoured - only if 1230 Support is holding or / false break is performed. If 1230 broken, then work with the 1200 level