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.

gold daily market commentary

Read our latest article on Trading the False Break Part 2

Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.

Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

Related Article