GOLD - Practical application position management
This past weekend's Down Trend Acceleration SELL signal followed through and attained the initial minimum target at 929.6. The MKT remains in play. Although the contract did not provide an ideal entry opportunity at our 948 inflection pivot it did provide an opportunity based on the type of technical signal that was in play.
By understanding the MKTs technical state we can align our strategies to capitalize on it. JS Services traders understand this and know that in a Down Trend Acceleration SELL signal our expectations are for the negative action to hold structure and continue to produce lower move lows and lower highs.
The early morning rally just before 8am cst had the MKT challenging Sunday evenings high structure. With the MKT unable to attain the initial 929.6 target overnight and our expectations of the MKT to hold negative structure, FADING price action against the Sunday night highs was a good bet with risk defined using 929.6 as a profit target.
A better way to position manage this opportunity is to subscribe to JS Services Price Map technical levels, http://www.jsservices.com/Authentication/freeTrialRequest.asp.
Today's GOLD Price Map had traders anticipating a sell opportunity at 938.8 with confidence as not only was the structure of the technical state in favor of a sale but the MKT was also challenging the session's Directional Inflection Pivot.
What's next? Well today our algorithm is producing a Down Trend Corrective BUY signal. Expectations today should be for a sideways to higher corrective trading environment with the potential for the MKT resuming the negative trend on any offer. BUY strategies are valid but profits should be taken sooner than later and for now the positive action is against underlying negative momentum. The best strategy today will be a SELL REVERSAL off a resistance level with the expectation that the 915.2 target will be back in play.
If the positive corrective signal is going to be negated and a resumption of the negative momentum is going to happen today, it is unlikely any corrective rally will breach the 948 inflection pivot. In addition if the downtrend is going to stay on course the MKT should close under the 938.8 level . If not our sell signal will most likely transition into a Neutral position with 962 and 966 targeted.
For more information please contact me at info@jsservices.com and visit http://www.jsservices.com/
JS
