FX setup commentary 22 Aug 2012

I have also been looking at commodity market as well as my broker also offers trading on commodities. I would like to share my current long entry on Gold in the afternoon today.

Gold - Daily Chart

The price has been consolidating within the range of 1530.00 to 1630.00. You can see that 1630.00 previously was a support level but it turned into resistance level since beginning of May after the price breakthrough that level. 

This resistance level (1630.00) has been holding strong and the price has tested this key level for 5 times! It shows how strong and important level is this level. However, a breakout has occurred in this afternoon with bullish bar and I have entered long position after the candlestick closed. The setup of this trade is as follow:

Entry                :     1638.92
Profit Target     :     1670.00
Stoploss           :     1620.50
Reward            :     3,108 pips
Risk                 :     1.842 pips
R/R ratio          :     1.69

(Note: The above calculation not inclusive of spread charged by different brokers)

You can see that how the price rallied after the breakout. It seems that very high likely my profit target will be hit on the next couple of days. I will update the status of this trade in the future, stay tuned!!!