Tuesday, July 12, 2011

Gold Triple Top with Strong MACD Divergence. Sell? 6:55 AM CST 7/12

Gold looking very toppy right now as the USD continues its tear to the upside.

Since Jun 6th, Gold has formed 3 separate shooting star reversals at the highs of the range (1550-1560). Each of those peaks have been confirmed with a lower and lower MACD value each time (see downsloping white line on MACD).

Couple a triple top, with strong MACD divergence, and thrown in that it is at the top portion of the channel it is in (light blue), and gold smells like a good risk reward for a sell here.

I sell here (1550) with a stop of 1565 and a target of 1505 (45:15 aka 3:1 reward:risk)

EDIT Stopped out

1 comment:

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