In gold, we recently witnessed a bounce off a major support zone at $1217. In addition, it could be the 4th higher low and gold has been in an uptrend since the beginning of the year.
On the one hand, there is the possibility to enter a more conservative trade, which is also noted in the chart. The last swing low is used as the basis for the stop loss, since the current trend breaks there.
You can also choose a more speculative option and use the support zone for the stop loss. The difference is quite clear in the position size. If you take a closer stop, you can choose a larger position size.
In the EURUSD, the fundamental analysis cannot be left entirely outside. There is a lot to be said about falling prices, which is attributable mainly to slightly countervailing monetary policy. The "Macron-Hype" is also likely to be over. There are, however, also chart-related aspects which speak for falling prices. So a gap is still open. It is often observed that such gaps are closed. This means that the closure is also the primary profit target. Of course, scaling-out can be worked out here, if one believes in a long-term price decline. Only the stop loss is not easy to determine. We consider it useful to put the stop on the level of the penultimate Swing High to generate a good RRR.
In the S&P500, we focus on Candlestick patterns and have made the following discovery on the weekly chart:
It is a so-called dark-cloud cover, although it must be mentioned that this week's candle is not yet finished. So it remains to be seen whether the picture is similar at the end of the day.
Out of this, we have a dark cloud cover, so we have the opportunity to go for a short trade, placing the stop at the high of the formation at about 2405 and place our take profit at 2325 with the option for scaling-out.
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