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Gold – 2 Bar Reversal Pattern Repeats | Apr 29th
Gold – Pullback Held After 2 Bar Reversal
After bouncing heavily off the 1269 yearly lows from the large engulfing bar & false break + live trade we talked about last week, the precious metal climbed to 1305 forming a small pin bar signal on the 4hr chart below. After selling off from this pin bar setup, the PM found a bid at 1287, almost forming another engulfing bar.
You’ll notice the 2 bar reversal pattern on this last bounce is similar to the one off 1269 (just a tad smaller). Either the smaller 2 bar reversal suggests buyers are having less of an impact, or the higher low is hinting the bulls are willing to step in at a worse price (buying confidence).
Bulls will likely have stops below 1269, so should this break, look to get short intra-day, as there will likely be a sharp move after the stops are tripped. If the bulls hold the 1287 lows for now and push higher, 1305 is up next. If they can clear this, then 1320 and 1330 will likely be challenged.
Read our latest article on Trading the False Break Part 2
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