Gold Long set-up.

In Gold we have a nice set-up on the Daily chart.  After forming an inside day on Friday, Gold broke out to the downside today before re-tracing the entire move and duly forming a false-break hammer candle on the daily chart.  This has occurred at previous support and after a gradual loss of momentum in selling pressure since topping out in Feb. If we can close above the 1630-35 level I will be looking to get long...

 

    

GBP/JPY follow up.

We have seen this pair trade-up to a key resistance level where I have taken profit for a respectable 2/3:1 risk reward.  I will be watching for further price action set-ups here...

Long Set-Up in GBP/JPY

We have seen a false-break lower in the GBP/JPY pair today forming hammers on both the Daily and 4hr time - frames as illustrated below.  This Bullish price-action has coincided with the 38.2 Fib retracement.  I have accordingly initiated a long position and will aim to run it to new highs if the dominant Bull trend can prevail.  

Aussie Long initiated

Following on from my comments on Gold in the previous post; we can also find a similar set-up in the AUS/USD pair.  As a commodity currency, the fate of the Aussie is often correlated with Gold so it is unsurprising that a similar set-up has materialized in both markets simultaneously.  That being said, they are not the same market and a position in both is somewhat diversified.  However, your position risk should obviously be carefully managed if going long both the Aussie and Gold as they are highly correlated when it comes down to global Macro economy especially China during the overnight session (GMT).

Gold Long set-up

As illustrated below it is apparent that we were correct to take profits when we did in Gold (post 27 March) as momentum did indeed slow and we have since seen a persistent pull-back.

On the 4hr chart below: a decent long set-up has presented itself again with another clear false break of previous support (forming the bottom of the bearish mother candle) this also coincides with the 61.8 Fib level which, if respected, can form the beginning of a powerful 3rd wave of momentum.

I am therefore looking to get long on a close above this level with a tight stop below the low of this latest Hammer candle.

  

Gold closed-out

I have closed out my gold position for a nice profit as momentum has slowed to the up-side here.

Gold false-break and double bottom.

In Gold we've seen a clear false-break of previous major support forming a hammer set-up on the 4hr chart as below. 

On the daily time-frame we can see the significance of this support level as it forms the low of the mother candle established on Tuesday last week.  A close above this level will provide further confirmation.