I like GG here because it seems to be mirroring the Gold Futures (/GC) ticker on TOS. You can see in the chart it also is very close to the 61.8% Retracement from the December highs and has and Inverted Head & Shoulders as well. Lately it is putting in an Ascending Triangle making higher lows. The Inverse H&S is roughly 9 pts. from the neckline to the head. The breakout occurred and failed momentarily but it looks to be finding legs again. We can see that from the Right Shoulder Push marked by letter A ( which is also known as an AB leg) it then consolidated via a bull flag depicted by the White lines ( also known as a BC leg). Now I will look for a measured move as depicted by the Green B line (also known as the CD Extension) which also brings the price action up to aprox. the 78% Fibo Retracement. I am looking to enter this position @ $41.00 with an initial stop at $38.00 for now.
If my thesis is correct, we can see this name possibly retrace the full 100% from the December highs which will come in at $46.24 followed by the full measured move depicted by the inverse H&S at about the $48ish area.
My targets if the position triggers.
Fibonacci 78% Retracement = 1st Target $43.37
Fibonacci 100% Retracement = 2nd Target $46.24
Inverse H&S Measured Move = 3rd Target $48ish
Fibonacci 127% Extension = 4th Target $49.86
Stop out will be set @ $38 initially if the trade triggers
Risk = $3.00
Possible reward = $8.00 to $9.00
I will also trail the stops up as the position becomes profitable.
NL = Neck Line
L = Left Shoulder
H = Head
R = Right Shoulder
No comments:
Post a Comment