Gold

BarroMetrics Views: Gold

First a comment on the AUDUSD. The 0.7750 level gave way, and the AUDUSD moved to the Primary Buy Zone. The price action suggests a move back to the Primary Sell Zone (around 0.7880 to 0.7850).

Turning now to the promised Gold comment. Gold is relatively straight forward.

Figure 1 is the 12-month swing (yearly trend). We have seen a correction to the 50% zone; and the time for development is complete – making it highly possible we’ll see the start of a move (up or down).

Figure 2 is the 13-week swing (quarterly trend). A similar story to the 12M: the time for development is complete. Note the possible Spring at A, suggesting a change in trend in the quarterly trend from down to up.

Figure 3 is the 18-day swing (monthly trend). We have a V-bottom change in trend (down to up). In a V-bottom, there are two possible buy zones:

  1. 50% of the penultimate down wave or
  2. the Primary Zone of that wave.

If I see a setup and trigger bar, I’ll take the trade.  The stop will be below 1168. I’ll apply the Rule of 3 to manage the trade.

Acceptance below the Primary Buy Zone will invalidate the V-Bottom assumption and suggest a retest of the 1140 to 1130 zone.

01-12m-gold.png

FIGURE 1 12-Month

02-13w-gold.png

FIGURE 2 13-week

03-18d-gold.png

FIGURE 3 18-day

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